Southwest bucks trend of falling traffic and loads

by Charlie Leocha on January 12, 2010

It is interesting that the only airline not charging for luggage these days and airlines focused on customer service are increasing load factors and traffic. What is Southwest’s special elixir to have a load factor jump by five times any of its competitors?

I’d like to think that the traveling public is realizing that Southwest’s policy of not charging for baggage actually makes a difference. It is a big difference for domestic flights where all of the legacy carriers are charging to to $100 to take two bags on a round-trip flight.

The other factors from my point of view are a simple understandable airline ticketing policy and pricing. Both JetBlue and AirTran that sell tickets based on combining one-way airfares have seen whopping jumps in passengers. Passenger service and comfort also come into play.

JetBlue and AirTran both reported increases in revenue passenger miles (RPM). Of the legacy carriers, only Continental Airlines, know for focusing on customer service, saw an increase in RPM of 3.5 percent.

Here are the traffic figures comparing revenue passenger miles (RPM) and load factors between December 2008 with December 2009:

AirTran RPM= +5.3% Load factor= -2.1%
American Airlines (Domestic) RPM= -1.6% Load factor= +0.6%
Continental Airlines (Domestic) RPM= +3.5% Load factor= +1.1
Delta Air Lines (Domestic) RPM- -6.3% Load factor= -2%
jetBlue RPM= +7.5% Load factor= +0.6%
Southwest Airlines RPM= +3% Load factor= +6.5%
United Airlines (N.Am) RPM=-3.9% Load factor = -0.2%
US Airways (Domestic) RPM= -3.6% Load factor= -1%

When our legacy carriers begin to pare back their added fees, passengers will begin to return. Or hopefully, the Clear Airfare bill introduced into the Senate by Sen. Menendez might force airlines to provide a fare display that allows passengers to compare apples to apples rather than scramble to figure out the real fare when all the fees are included.

With fees rising and legacy carriers disguising their actual fares by hiding the additional fees until late in the booking process, consumers are being flimflammed. d

Photo: Eric Harmatz Flickr Creative Commons

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Tagged as: airlines, load factors, passenger fees, revenue passenger miles, southwest

  • Em Hoop

    Ah, but flim-flam is the flavor of the age. Name one business that doesn’t do it, one way or another.

    Until our leaders include another Teddy Roosevelt, trust buster, and another muckraking group of journalists, we will continue to be flim-flammed. But I don’t expect to live that long. Too much profit to be made in flim-flam.

    Let it be said that our Consumer Travel folks do the best they can, but it takes a critical mass of muckrakers, and we ain’t there yet.

  • Frank

    What is Southwest’s special elixir to have a load factor jump by five times any of its competitors?
    ==================================================

    It DOESNT fly international. Most of the OTHER carriers lost load factors due to weak international traffic. International traffic was hit much harder.

    Traditionally, when you look at Southwest’s load factors, they lag compared to legacy carriers. LQQK it up.

  • http://www.tripso.com/author/leocha Charlie Leocha

    The figures in the post are all domestic or North American RPMs and load factors. Southwest’s lower load factor means less crowded planes, easier rebooking, and a chance to make more money as they fill more seats without adding more aircraft and staff. It is a good thing.

  • The Good Doctor

    It’s a matter of trust. SWA customers trust SWA not to stick them with hidden fees. SWA customers trust SWA to only charge them for privileges (preferred check-in), and not for rights (e.g., checking luggage). And given all the back injuries claimed by flight attendants who help passengers hoist their overweight bags into the overhead, airlines should be relieved passengers are checking bags!

  • Frank

    Charlie Leocha January 13, 2010 at 11:04 am
    The figures in the post are all domestic or North American RPMs and load factors.
    ============================================

    Had to reread the article, yes, you’re right.

    United Airlines (N.Am) RPM=-3.9% Load factor = -0.2%
    US Airways (Domestic) RPM…………………

    DIDNT SEE IT AT FIRST.

    Southwest’s lower load factor means less crowded planes, easier rebooking, and a chance to make more money as they fill more seats without adding more aircraft and staff. It is a good thing.

    huh??????????…….MAKE MORE MONEY, FILL MORE SEATS WITHOUT ADDING AIRCRAFT………………explain that.

    Flying around EMPTY SEATS is NOT a good thing.

  • http://www.tripso.com/author/leocha Charlie Leocha

    Southwest has been making a profit with load factors in the low 70 percent levels. Now if their load factor goes to the mid-70 percent, that means that they are flying 5 percent more passengers in the same aircraft with the same crews. flying around with empty seats isn’t necessarily bad if you are making money. As you fill the seats you make more money. Legacy carriers are hitting 85 percent load factors and still losing money. They are doing something wrong.

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  • Frank

    Profit? They’ve had two quarters of LOSSES last year. And only modest gains in the third quarter. They’ve banked on their FUEL HEDGES for several years now. That’s what has kept their costs down. And, they’ve moved away from secondary airports for quick turns, gave labor industry leading contracts, entered highly congested airports which goes against Herb’s original vision.

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