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We will not introduce a major economy – Skift

Southwest Airlines is still a division.

While the major three US airlines – Delta, United and America – have introduced a major economy product that is usually offered without the choice of seats or early embarkation, and JetBlue plans to do so, Southwest CEO Gary Kelly categorically Turn it off.

Speaking of two revenue-generating initiatives planned for 2020, which will be described in detail later this year, Kelly has also crushed any speculation and reiterated that the airline will not charge fees for the first two checked bags. In other words, these bags will continue to fly for free.

Speaking to financial analysts and the press on Thursday, after Southwest announced its fourth quarter and profits for the entire 201

8, which marked the 46th consecutive year of the airline's profits, Kelly answered the question whether the main trend in the economy, including the plans of JetBlue, is a Southwest driving revenue-generating strategy.

"I think the short answer is no, that's not what we answer; our abilities have evolved over time, "Kelly said. – We hope this means they have improved. And we see opportunities where we can manage the business in larger volumes or more efficiently in terms of pricing. And that's what we're going to do here in the near future. "

Two questions that Kelly often gets are about basic economy and baggage charges. This was held on Thursday.

"You will not see the major economy from the Southwest. This is not what we do, and as I said, we will not collect baggage charges. We think we have better opportunities that fit our brand, "he said. "I love the fact that we are different and they divide and we do not. So we just have to continue to find ways with the passenger universe and the different needs they need to see how we can stay true to our brand and offer something more valuable to road warriors, leaflets once a year, whatever it is. "

You do not often hear that an airline chief executive mentions the need for" leaflets once a year, "but apparently the Southwest may have product deployment in 2020, which partly refers to those often forgotten

Southwest warned in the autumn that his cost was higher than what is convenient, and that, in addition to the search for efficiency, it will look for new revenue generating opportunities. In this regard, the airline announced on Thursday that it has generated $ 205 million before tax gains from improvements in its revenue management capabilities.

The airline does not plan to introduce new ancillary services such as early check-in. or Business Select products this year, but plans to introduce two in 2020, and will provide more information about them later this year.

In other events, Southwestern officials were telling about the bad consequences of the partial exclusion of the US government from Kelly. at one point, referring to the situation as a "sting".

Southwest President Tom Niyen said that closing the government costs the airline $ 10 million to $ 15 million in revenue in January. Officials note that the Southwest has less exposure to the shutdown, as there are no travel arrangements to the federal government to the extent of some of its competitors. For example, Delta said it has received $ 25 million in revenue since its January closure.

The partial closure of the government has interrupted the launch of the long-awaited launch of flights to Hawaii. Chief Operating Officer Mike Van de Wen said that if the shutdown is completed within the next week, the Southwest may start the service by the end of the first quarter, but the debut will be delayed if it continues.

in a word – it's infuriating, "Kelly said of the government's closure, adding that no one can predict damage to the economy if stopping continues.

Chief Financial Officer Tammy Romo said the delayed roll-out of Hawaii is the increase in Southwest spending on the available saddle mile by one percentage point due to factors such as fleet depletion and increased airport costs.

Officials said the financial results of the Southwest are well prepared for 2019. up to $ 654 million in the fourth quarter from $ 1.7 billion a year earlier. The quarterly profit in 2018 would be record if not for special positions in 2017, including a $ 1.4 billion benefit from tax reform. Revenue for the quarter rose 8.5 percent to 5.7 billion dollars.

Photo: Southwest Airlines debuted Louisiana One, a new special jet, in New Orleans on March 7, 2018 Stephen M. Keller / Southwest Airlines

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