Jun
13
The CEO of Southwest said today that it may have to put a stop to the growth plans for the airline. The revenue of the airline isn’t rising as much as they would like. They have been growing about 8% a year adding more planes and servicing more cities. Now, they can’t raise ticket prices much more to cover the increasingly higher gas prices. The main ingredient that kept Southwest for low fares, was the great idea of the airline to hedge fuel. I believe their fuel hedging contracts are expired or going to be expiring very soon. Southwest will soon be paying the high gas prices just like the other airlines. They are a very unpredictable airline as to what their next move will be to help them keep their low fares and seats booked. What will they do to help offset the high fuel prices? Anyone have any ideas? or will time tell?