Freight (cargo and mail) revenue: $172 Million (~1 % of total revenue).

Other (loyalty points) revenue: $1.48 Billion (~6% of total revenue).

Passenger (air ticket) revenue: $20.77 Billion (~93 % of total revenue).

In FY2019, Southwest Airlines’ reported $22.4 billion total revenues to consist of $20.7 billion as passenger revenue making up 93% of total revenues while freight revenue was $172 million, which is less than 1%. Over dependence on a single revenue source exposes a company to catastrophic loss in case of uncertainty or economic turmoil within that sector. With a large number of flights, Southwest Airlines is undeniably a force to reckon with in the airline industry. During peak travel season, Southwest operates over 4,000 flights a day. The more an airline flies, the more revenue it can generate. domestic market share of 16.8%, followed by American (17.6%) and Delta (17.5%). Dominant players can leverage their connections, superiority, and resources to lobby successfully for the adoption of legislation that advances their agenda.įrom Feb 2019 to Jan 2020, Southwest Airlines is ranked 3 rd and has U. Market Share Dominanceīeing a dominant player in the market is particularly beneficial in industries that are influenced by intense lobbying, such as airlines. Southwest Airlines’ management is regarded as one of the best in the industry and the airline’s major strength. Effective Managementįrom financial management to HRM, having effective management from top-level down to the mid-level enhances stability and increases the rate of growth. From 2011 to 2019, Southwest Airlines’ ASMs grew from 120.58 billion to 157.25 billion, making it one of a few national airlines with ridiculously high capacity. Having a higher ASM means more seats for longer miles, which contributes to the bottom line. The capacity of airlines is measured in terms of Available Seat Miles (ASMs). Southwest Airlines provide direct non-stop flights under its point-to-point service, which reduces time-wastage. It allows for simplified training (pilots, staff and ground crew), maintenance, scheduling, flight operations, and effective aircraft utilization. Single aircraft type has been an effective, low-cost strategy for Southwest Airlines. As of Dec 2019, it has a total of 747 Boeing 737s Aircraft. Since its inception, Southwest Airlines has exclusively used Boeing 737s for all its flight operations. Southwest Airlines is the 4 th most valuable airlines brand in the world, with a brand value of $6.6 Billion.

Considering airlines is a cutthroat industry, it’s indeed a great accomplishment. In 2019, Southwest Airlines showed profits for 47 years consecutively. It fuels growth by allowing businesses to amass capital for expansion and R&D. Consistently ProfitableĪttaining high profits consistently is the main purpose of going into business.

In 2019, Southwest Airlines was ranked #11 Fortune’s most admired company in the world. According to recent Forbes ranking, Southwest Airlines is ranked #2 America’s Best Employers 2019. Southwest Airlines has consistently been ranked as one of the best employers in America. The airline has held the title of the best low-cost carrier for years. Using the airlines’ Low Fare Calendar, passengers can book flight tickets starting as low as $45 for a one-way flight. One of the reasons behind Southwest Airlines’ large number of loyal customers is its low-cost flights. The airline has mastered the art of bringing the customer into the Southwest family using its enticingly warm LUV culture. Making every customer feel like a part of the family is an effective way to enhance customer loyalty.

Southwest airlines map