Southwest Airlines Announces Schedule Changes

Southwest Airlines is reducing and adding to its schedule.

The moves are based on a new changing dynamic for more leisure travel. Southwest said on its earnings call for this quarter that it expects to make $500 million with the moves to reduce some midweek flight and add almost 20 destinations.

Southwest CEO Robert Jordan said that while he expects business travel to bounce back, it is rebounding at a much slower rate than leisure travel. Southwest, for example, is adding more flights to Phoenix, Arizona, and more flights to the state of Florida.

The airline faces increased competition in Phoenix as American Airlines attempts to bolster its hub there.

To make some room for the new destinations, Southwest will lower its capacity on Tuesdays and Wednesdays, which have been traditional days to fly for business travel. The airline also plans to trim its late-night and early-morning flights, which have become less profitable.

By cutting back on business routes, Southwest said it will have more aircraft to be deployed for leisure routes instead of business. Some moves were also attributable to trying to beat a quarterly profit, which still beat Wall Street expectations by $60 million.

Southwest also had a much-publicized meltdown over the holidays that carried over into the New Year.

The airline lost almost nine percent of its stock price after announcing the quarterly results last week.