Southwest Airlines plans to further curb capacity growth in 2008 to between five to 10 additional Boeing 737s, and to unveil a second round of route cuts by mid-year.
The low-cost carrier declined to break down how many new Boeing 737-700s will be delivered versus how many older 737-300s will be retired.
The carrier’s growth plans have declined dramatically since a year ago. Southwest orginially planned to add 34 737-700s in 2008, but trimmed that number to 19 in July. The new plan trims that figure by 10 to 12 aircraft, a Southwest spokeswoman says.
Laura Wright, senior VP and CFO, explained the plan to the Calyon Securities US Airlines Conference today.
“We want to reduce the risk that we have for next year,” Wright says. “We want to improve our profitability and we want to get closer to meeting our financial targets.”
The carrier “remains cautious about the growing evidence of the slowing domestic economy,” she says, adding that high fuel costs next year are another concern.
For the first few months of 2008, the carrier intends to maintain its current network of city-pairs, but a second round of route cuts are now expected to be unveiled in May, she says.
Source: Air Transport Intelligence news
Source: FlightGlobal.com
