Southwest Airlines may introduce bag fees or other ancillaries to boost lacklustre margins, CEO Bob Jordan has said. Mr Jordan said “we’re working on our 2024 plan. We’re not ready to lay all that out.”
Southwest has increased its order of Boeing 737 Max 7 aircraft, adding 108 more planes to its existing orderbook.
Being the launch customer for this Max variant, the low-cost carrier now has a total of 302 Max 7 aircraft on order.
Previous delays, including the worldwide grounding of Max aircraft and the Covid-19 pandemic, caused the expected launch of the 737-7 to be pushed back multiple times. It is now anticipated to enter service in 2024.
With a range of approximately 3,800 nautical miles, the 737-7 has the longest range within the Max aircraft family. Southwest plans to configure the plane with an all-economy layout seating 150 passengers.
Southwest Airlines, an all-Boeing carrier, is gradually replacing its 737-700 and 737-800 planes with Max fleets. The airline already operates over 200 737-8 aircraft and has a total of more than 500 Max aircraft on order.
As part of their ongoing $2bn investment to enhance the customer experience, Southwest plans to install new-generation USB A and USB C power ports and larger overhead bins on new deliveries of the 737 Max aircraft.
Bob Jordan, the president and CEO of Southwest Airlines said the airline had a long-standing relationship with Boeing, dating back over 50 years. and appreciate the efficiencies and cost savings of having a single fleet consisting of Boeing aircraft. “They’re part of our history and part of our future as we continue to recognize the many efficiencies and cost savings of a single fleet.”
Southwest’s Boeing only business strategy saved on maintenance costs model served as a model for a young Michael O’Leary of Ryanair who spent time working there to formulate his own pals for Ryanair.
Jordan said that that travel patterns have shifted during the pandemic, and Southwest are adapting their network accordingly. The focus seems to be on leisure demand, which remains strong, while business travel is gradually recovering.
