Why is Southwest struggling?

Chief among them are outdated internal processes and information technology. Southwest's scheduling system hasn't changed much since the 1990s, according to Captain Casey Murray, president of the Southwest Airlines Pilots Association. Southwest has also acknowledged the company's outdated infrastructure.



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Southwest Airlines' financial metrics Southwest Airlines brings in more operating revenue than it pays in operating expenses, an indication of the financial stability for the company. The airline held. Southwest Airlines is one of the top ten largest airlines in the North America, in terms of operating revenue in 2022.

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Southwest Airlines has 33.85% upside potential, based on the analysts' average price target. Southwest Airlines has a conensus rating of Hold which is based on 5 buy ratings, 10 hold ratings and 2 sell ratings. The average price target for Southwest Airlines is $32.62.

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Online customer reviews tend to agree with Skytrax's assessment. According to the 2022 Airline Quality Rating report, Southwest was ranked as the No. 1 airline in 2021 and 2020. In addition, Southwest had the second lowest consumer complaint rate in 2021.

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Instead, as travel slowed in 2020, and then as Southwest added new cities in 2021, the airline dropped routes, or point-to-point service. In some cases, it might restore a nonstop flight only to cut it later and shift resources to more in-demand routes.

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Key Takeaways. Southwest Airlines (LUV) reported a worse-than-anticipated loss of $0.27 per share for the first quarter of 2023. The negative results reflect the lingering impact of operational disruptions suffered by the airline in December 2022.

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Re: Lack of nonstop flights Demand is the biggest reason; other reasons is competition in the area.

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Most major airlines canceled or delayed flights, but Southwest Airlines canceled at least 70% of its flights Monday -- more than 2,600 -- due to a reported system meltdown. The chaos continued Tuesday, with the airline canceling 62% of flights for the day and canceling 62% of flights on Wednesday.

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Southwest Airlines lost $159 million in the first quarter as the financial impact of its holiday meltdown stretched well into 2023. The carrier had canceled more than 16,000 flights in the final days of December. It expects revenue headwinds into the second quarter but forecast a profit.

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Southwest Airlines' Weaknesses
  • Lack of Diversification. Over dependence on a single revenue source exposes a company to catastrophic loss in case of uncertainty or economic turmoil within that sector. ...
  • Dependent on the US Market. ...
  • Overdependence on Boeing 737s.


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1 best domestic airline: Delta. Delta Air Lines ranked as the highest-rated domestic airline in the U.S. According to Bounce's 2023 Airline Index, Delta recorded the highest percentage of on-time arrivals at 81.82% and one of the lowest cancellation rates at 1.96%.

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No First-Class Or Meals. For those who like flying first class and getting a meal on your flight, Southwest does not do this. You can get a great seat if you get Business Class, but you're not guaranteed to sit in the front row.

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Southwest is still more affordable Our analysis found that Southwest's Wanna Get Away fares were, on average, cheaper than main cabin airfares on American, Delta and United in every scenario except one: American Airlines Main Cabin seats were about 1.5% cheaper than Southwest fares during the holiday season.

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