Southwest Airlines to Cut 88 Flights

Mon Aug 23, 2004

NEW YORK (Reuters) - Southwest Airlines Inc. (LUV.N: Quote, Profile, Research) , the largest U.S. discount carrier, on Monday said it will eliminate 88 scheduled flights in order to boost revenue by freeing up planes for more lucrative markets.

The Dallas-based carrier estimates the schedule changes, the largest in its history, will increase annual revenue by about $60 million.

"This does represent the largest schedule tweak we've ever made," said Linda Rutherford, a spokeswoman for the airline.

Although the carrier will not replace every flight with a new one, it will replace every hour of flight time. In some cases, it might cut several short-haul flights and add one or two long-haul flights.

"In other words, we are not reducing capacity," Rutherford said.

The changes will take effect on Oct. 31.

Southwest, which has led the low-cost carrier growth in market share over the past six years, has faced increasing competition from other low-cost airlines such as JetBlue Airways (JBLU.O: Quote, Profile, Research) . All U.S. airlines have also been under pressure from soaring fuel prices and an inability to raise fares.

"This is the first time we have had as aggressive a look at our flight schedule in a long time," Rutherford said. "It's a sizable tweak for us. We've never done anything like this before."

The schedule changes affect 3 percent of the airlines 2,800 daily flights, Rutherford said.

Southwest shares closed at $14.70 on Friday on the New York Stock Exchange.

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