How can Southwest Airlines afford to fly so cheaply when the other airlines charge more going the same place?

Answer 1

Southwest Airlines only operates one type of plane -- the Boeing 737 -- so they don't have to employ a bunch of different mechanics with expertise on several different models. That's one way. They're also not as "top heavy" with managers and executives as other airlines, and if you've ever flown on Southwest you'll see that their standard of service is usually lower than the other major airlines because they offer less amenities and have fewer flight attendants on the planes. All of these little things add up.

Answer 2

Southwest's BIG advantage over the competition is in fuel costs. Major fuel consumers like airlines negotiate prices with fuel distributors and set contract prices about once a year. The airlines basically gamble that prices will go up in the next year and try to lock in at the lowest possible price. Southwest, though, signed a multi-year contract for their fuel and locked in at a low price for a long time. They are not paying any more for jet fuel now than they did 5 years ago. And jet fuel prices are doing exactly what gasoline prices are--- going up.

For any airline, fuel is the biggest expense other than the actual aircraft. So by accurately predicting that fuel prices would soar and locking in a bargain-basement price for fuel, Southwest has managed to keep operating expenses way down.

Their contract runs out in either 2007 or 2008, though; I would expect to see their fares jump when that happens.

Answer 3

That's a good point, but I can give you at least some of the reasons because I used to work for Southwest.

One way the airline is able to keep costs low is simply by doing away with many passenger amenities such as in-flight meals, alcohol, etc., Catering is more expensive for airlines than you may think so keeping these passenger costs down means big savings for the airline.

Another strategy is that Southwest primarily uses smaller, less-congested airports that don't charge hefty landing and parking fees. This is why you'll notice that Southwest may not offer service to a particular large city where you'd expect all airlines to fly in and out of. In such case they'll use another nearby airport (in the case of Boston, Southwest flies to nearby T.F. Green Airport in Providence, Rhode Island as well as Manchester-Boston Regional Airport in Manchester, New Hampshire).

They don't offer their employees very large salaries, either, so this may be another way to boost their bottom line (though their benefits package is excellent and it's a very fun work atmosphere).

Answer 4

sean_2015 probably offers the CLOSEST answer.

Southwest is the ONLY US airline to be consistently profitable, they have NEVER had a negative quarter.

Their salaries are now among the BEST in the industry, since most of the legacy carriers have asked for give backs.

They are not top heavy with management, that helps.

They only fly the 737, that helps.

They have a great reputation, that REALLY helps.

But the real truth of the matter is that they have "hedged" their fuel costs. They bought four years worth of fuel at a set cost before the dramatic rise brought on by the conflict in Iraq. Thus, their operating costs are much lower than anyone else who is buying fuel on the spot (current) market.

They really are a great airline ... and I work for one of the legacy carriers.

Answer 5

This article (linked below) describes how they've reduced the number of personnel per plane as well as for other processes in the airline business. That cuts costs which is reflected in the ticket price.

Other reasons:

plane returns to the port of departure during the night, with passengers on board (not empty) = reduced operation cost

flexibility of their pilots - flights are offered multiple times, consistently throughout the week.

simple catering services: peanuts, coffee, juices, cold drinks, and nuts - but they welcome passengers to bring their own meals on board for their own pleasure and convenience.

flying into smaller airports. Example: Chicago Midway instead of Chicago O'Hare. = faster turnaround.

pilots consistently work 60 percent more than the other airlines, but their salaries where 50 percent less than other pilots. To make up for the difference, employees are also in a profit-sharing plan.

cleaning the planes in a 15-20 minute time period rather than the normal one hour time span that is often used by many other airlines. Planes can leave in 30 minutes vs. 1 hr (like other airlines).

ticketless travel, which means the reservations can be made online with a confirmation number. Reduces personnel assigned to the reservations process.

Answer 6

Because they're good at cutting costs. With Southwest, meals are not included, destinations are limited only to places where they can get a lot of passengers, some stop at second class airports to cut expenses, and I believe their aircrafts are of the same type, so maintenance is cheaper. And many more other reasons.

Answer 7

A common myth! They are not always cheaper. And guess what, they only go to about 50 or so citys! United flys to about 4 to 5X times that with their partners. How can you save money when you have to waste time on a train or rental car just to get into NYC for example. They dont fly there!
Also - lousy FF program too. Your miles expire in one year!

Answer 8

Plane (pun) and simple.... southwest has lower operating cost than everyone else.... Although the playing field is changing with all the legacy carriers filing bankruptcy...

Answer 9

They oversell their flights. They dont offer peanuts or drinks unless you ask for them on the flight. There are alot of things that they dont do that other airlines do.

Its like a cattle style entry and exit. first come, first serve. Three seats across on each side - find a seat, lucky not to be in the middle of two stinky people...

I dont fly them unless I have to... :)

Answer 10

SW doesn't have better prices they just advertise a lot. Most of the time why they look like they are better is because they are offering fares 1 way, the kicker is they have to be purchased roundtrip.