Southwest extends freeze on air fleet size
Southwest Airlines said it will resist the temptation to go shopping for new aircraft for another year, in order to focus on the bottom line.
This goes beyond 2014’s freeze in capital expenditure announced previously by CEO Gary Kelly.
"In 2014 and 2015, the plans are for the fleet to be flat," said COO Mike Van de Ven, explaining that the carrier is looking to increase the return on invested capital up to 15%, compared to 13.1% last year.
Further investment will happen from 2015 "if the economics and the business are right," he said.
With no upward movement in the fleet number, which is at approximately 680 planes, there is likely to be some rejigging of schedules and cutting of less profitable services.
The carrier has already set out plans for expanding services at key airports, taking advantage of American-US Airways divested slots and the relaxing of restrictions at Dallas Love Field.
Plans for 2015 include possible flights to Central and South America after new airport terminals come on line at Houston and Fort Lauderdale, Florida.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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