Thursday, April 17, 2014
Inquirer Daily News

Why Southwest is cutting back at PHL

Airline reporter Linda Loyd explains thoroughly in a story published today why Southwest will be making deep cuts in its PHL service early next year. As noted in many earlier posts on this blog, US Airways (after two trips through bankruptcy court) now has lower operating costs and has better overall management than it did when Southwest came to PHL seven years ago, making it much more competitive.

Why Southwest is cutting back at PHL

Airline reporter Linda Loyd explains thoroughly in a story published today why Southwest will be making deep cuts in its PHL service early next year. As noted in many earlier posts on this blog, US Airways (after two trips through bankruptcy court) now has lower operating costs and has better overall management than it did when Southwest came to PHL seven years ago, making it much more competitive.

The fact is, if Southwest has such low fares on some of its PHL routes that it can't make money and is giving up, then US Airways is unlikely to be making money on those routes at the same low fares either. The difference is US Airways has a much larger investment and a much larger route network at PHL, and thus can absorb losses on some routes while making it up on others.

Tom Belden
About this blog
Tom Belden has been reporting about Philadelphia International Airport and other air travel subjects for more than 20 years, writing columns for The Inquirer's Travel and Business sections. His reporting (with colleague Craig McCoy) on baggage handling problems in Philadelphia have been credited with helping to improve the system. His previous blog was called Road Warrior. He can reached at tbelden@phillynews.com. Reach Tom at tbelden@phillynews.com.

Tom Belden
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