Southwest Airlines announces changes, slows growth.

[Alex T]

Southwest Airlines Announces Plans for Fourth Quarter and 2008
Wednesday June 27, 11:00 am ET
Carrier Sets Course With New Initiatives; Additional Revenue Target of More Than $1 Billion

DALLAS, June 27 /PRNewswire-FirstCall/ -- Speaking to financial analysts and investors today after ringing the Bell on the 30th Anniversary of "LUV" trading at the New York Stock Exchange, Southwest Airlines CEO Gary Kelly outlined plans to improve the Company's profit growth. The airline will slow its fourth quarter 2007 available seat mile growth and optimize its flight schedule. In addition, Southwest announced it now plans to grow its fleet in 2008 by 19 net aircraft, 15 fewer than was previously reported. Kelly said slowing capacity growth will allow the carrier time to implement and evaluate the effectiveness of several initiatives Southwest intends to launch in fourth quarter 2007.

Rest of the article here...
http://biz.yahoo.com/prnews/070627/law072.html?.v=101

Some exciting changes to look out for..

During fourth quarter 2007, Kelly said Southwest plans to:

* Slow its available seat mile (ASM) growth to approximately six percent
* Enhance its low-fare structure
* Enhance its Rapid Rewards frequent flyer program
* Launch a new advertising campaign
* Unveil a new boarding/seating method

To see the new changes look here in terms of Flight Changes.
http://www.southwest.com/about_swa/pres ... _chart.pdf (http://www.southwest.com/about_swa/press/070627_chart.pdf)

Alex

[Nonstop2AUH]

Stock has trended down since last summer in an up market and while newer LCCs and the rebound of the majors got alot of positive attention in the business media, so looks like they needed to do something to reinvigorate their image at least. Hope this does the trick.

[T-Bird76]

A bit surprised to see ISP-LAS go to one daily, those flights are always packed. I wonder what enhancements to Rapid Rewards they'll make; an elite member category would be nice. I'm not sure I agree with the reduction of the long haul flights, those flights were real alternatives to other carriers.

[lijk604]

DAMN!
Islip loses 4 MDW's, 2 BWI's & a Vegas? Wow, 7 trips a day ia a hit, maybe it coincides with the ramp reconstruction? Maybe 2008 can look forward to growth again. All I know is, guess I wont be flying on SWA to Vegas, that thing is going to be packed solid every day.

[PhilDernerJr]

I'm being optomistic and assuming that Southwest WANTS to slwo their growth so that they don't expand beyond their control and spiral like other airlines (JetBlue). Southwest has been strong for a long time and I doubt anythign going on in the industry these days will change that.

[nyctotpo]

what is going on at ISP. The only reason I would see the reduction of these flights is to possibly add more Florida flights at a later time. Does anybody have any reactions to this?

[JetBlueAirwaysFan]

That would be nice!