Southwest's INSANE Profitability Streak, Explained
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- Опубликовано: 15 май 2024
- What's your favorite airline? Let me known it the comments!
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US Airlines don’t exactly have the greatest reputation. They’re known for nickeling and diming passengers, having terrible customer service, and on occasion dragging folks off of planes - literally.
But Southwest Airlines is an exception. Not only does it have a cult following of loyal customers, but it also sports one of the highest employee satisfaction ratings amongst all US employers. The airline is so confident in its ability to appease that the company decided to make their ticker symbol on the New York Stock Exchange “LUV”.
However its wide appeal isn’t the airline’s most impressive facet. That’s because the airline also happens to be the record holder for one of the most insane streaks in commercial aviation history. In an industry that’s notoriously hard to make money, Southwest has remained profitable for 47 consecutive years. How have they managed to do it? Let me explain…
#Southwest #Luv #SWA 
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True story. I stayed with a lady in Orlando.
She was homeless from 16 to 19yrs old.
She got hired by SW. her first day on the job she was told to go check a plane for any garbage or food wrappers. She walked on the plane and a man was smoking. She said
“Excuse me, there’s no smoking on the plane.”
The man said “sweetie, I own these planes.”
It was Herb Kelleher, the founder of SW.
A year or more later He gave a speech at Orlando. After she went up to shake his hand.
He took one look at her and Said
“Excuse me, no smoking on these planes.”
And he even remembered her name and gave her a big hug. She was shocked.
That's magical.
Many of us that work for SWA have similar stories about Herb. He was an amazing man. 2.5 years after I first met him at my initial training I had the opportunity to see him again when attending a class at the corporate headquarters, he not only remembered my name, but also my position and what airport I worked at.
Hugs? So pre-Covid!
Soooo. They treat their employees well and treat their customers well and use sensible conservative business practices and....they make money? Its so crazy it just might work.
wow
i worked for southwest and i want to include that they have been so proffitable they stated that there will be no layoffs in 2020, they didnt accept the second round of cares act loans because they didn't need them and while other airlines are struggling to stay around southwest is actively looking to expand by buying slots at new airports for cheap when other airlines need money
Southwest is like the costco of the airlines, you are well treated and the employees are actually happy and want to work win-win.
Nice try, Costco threats their employees like garbage.
what a coincidence .. I'm a Costco employee but I just got hired by Southwest airlines and leaving Costco .. XD
@@ScarletandGrey4ever Costco has been voted one of the best place to work for years lol. The employees are payed well, and get good benefits. Most retail stores, are not paying close to 20hr, and for a entry level position.
The LUV stock tracker is also a nod to Love field the airfield where the airline was founded.
Dallas-love field to be precise.
There is an unrelated field [Lamesa] out in west TX with code LUV.
I just ran across your channel up and enjoying the videos. I Remember those days and how remarkable through hedging it worked out as well as reading the articles as their contracts were expiring. I hope you’ll consider providing a little bit more in terms of hard numbers and sneak a few charts in there even if we have to pause to actually appreciate them. Also, as I was looking at the The wingtips, I was reminded of how they competed against Boeing if I’m not mistaken by fabricating and supplying to other airlines the modified wingtips in the early days. That would be a good topic for an article as well in that it must’ve created some friction with Boeing.
actually met Kelleher once, sat next me on a flight, talked for a couple of hours. he was an intense but very cool guy. Very down to earth.
If southwest operated long haul flights too, they'd be USA flag carrier.
After Pan Am, TWA and another iconic airlines falls, southwest and maybe delta is literally the best we got.
But they would probably be much less profitable with long haul flights
Oakland to Honolulu
Delta is the best we've got.
@@seanthe100 i knock other airlines till you try them
Delta is the best in the USA
2:57
Fun fact, southwest actually operated a couple boeing 727's in the 80's and early 90's.
edit: ok ok i know that they got 717s from the airtran merger, you can stop complaining now
I did not know that. Thx
Ahaha yes, I was going to mention this too!
Southwest standardized on the 737 because by the middle 1980's, the 737-300 had the range most of Southwest's longer routes. But it wasn't really until the late 1990's that the airline started to really fly transcontinental routes like OAK-BWI, thanks to the introduction of the 737-700.
Seriously? They bridged the two eras
I was thinking the same thing when he said that they only operated 737’s. They did in fact operate 727’s for a period of time.
Southwest did operate 727’s for a short time early on. But they have been flying 737’s their entire time.
One of the early cost-savings was no seat reservations, as Herb Kelleher didn’t want to spend money on a computer system for seat reservations.
Coby, for the love of god, please get a new background. I can't help but think I'm about to take your high school senior photo lol. Love the content otherwise.
I've been thinking about how I can improve it, actually. This is just the best solution for where I currently live, I need a dedicated studio
Coby, your original background was way better. Your new background causes a lot of color balance issues to you in the foreground.
Keith Miller I already said that in the first video he made with this background and he replied it was no longer available as he moved !
I think it would look nice just white!
François UNGER so did I.
Southwest is my favorite airline for a very good reason, they have been paying me for the past 37 years. Thanks for the great vid!
I’m stationed at Dallas love Field and have been taking advantage of the Southwest airlines stock purchase program for employees which is an 10% discount of whatever market price is on the last day of the month. I started purchasing right before the cash and I’m already seeing returns of 40+ percent. They also have continued to match near 10% dollar for dollar for our 401k. I love this company!!! The best airline I have worked for without a doubt!!
SWA is my favorite airline for many reasons. A little known history; SWA briefly had a 727 in its fleet way back when.
I was waiting for you to get to fleet commonality, and of course you nailed that! Excellent video Coby!
Although I wouldn't count them out of the profitability game just yet...
Why was the calendar designer fired?
He took a month off
:/
Thanks will be adding this to my dad joke collection
A+
It's cool that you're talking about southwest because here in smf, where I live and work, it's majority southwest. I see them coming in and out every day. It's quite a beautiful sight
BWI too, about 75% of the flights.
I am a die-hard Southwest airlines cult follower!
Not just because they only have Boeing 737 aircraft, the flights are cheap, the service is great and best of all, no seating arrangements!
I am visually impaired so I can pre-board and basically pick any seat that I want. That's one of the best parts about flying Southwest is you can sit in any seat without pre selecting your seat.
Although flying on the same Boeing 737 aircraft all the time does get a little boring. It would be nice to fly on a different kind of plane once in awhile.
Favorite airline is Singapore Air - but in US I agree sw is hard to beat.
I've only flown Singapore once but I need to fly them again - it was an awesome flight but I don't think you can claim something to be your "favorite airline" unless you've flown them multiple times and really gotten the full experience
Singapore's long-haul service is superb.
The quick turns started as the famed 10 minute turn and over the years have spread out to the current 30 minutes. As impressive as 30 minutes is, just try and imagine doing it in 10!
I have had the opportunity to speak to several older ramp agents over my years with the company and it amazes me when they tell me how they used to pull it off!
Damn i cant imagine crawling in the pits and loading and unloading 400 bags in 10 minutes
You, simple flying and DJ's aviation are the best. Anyone agree with me?
I do
The most iconic trio
who wouldn't agree with you?
Nah DJ is old news articles that he reads and posts nothing good
So true
Southwest will summer the storm...I love Southwest!
You're awesome Coby! I always learn something from your videos and look forward to them.
I'm always interested in learning about behind the scenes business tactics, so it was awesome to hear about the inside workings of Southwest - ESPECIALLY the oil hedging (Didn't realize that practice took place)
I didn't knew the concept of hedging. SO Thanks Mr. Coby. Appreciated!
I’m a huge fan of Alaska Airlines. They, like Southwest have excellent customer service but Alaska has one of the best frequent flier programs I’ve used. Love how they are partnered with airlines like QANTAS and Emirates!
I luv SWA! Thanks for the video!
For international travel, my all time favorite is Cathay Pacific. Best of the best with both ground and in-flight service. Luv connecting through Hong Kong. Had a great trip from Barcelona to Fort Lauderdale in the fall of 2019 on Norwegian and was hoping to fly them more, but sounds like that might not be in the cards with their current situation. As for travel around the States, you guessed it, I LUV Southwest!!
I am 71, live in Washington and my lives in California. I have flown Southwest 214 times, every time coach and I enjoyed every trip. You can feel and see the difference on other airline.
Southwest Airlines and Delta Airlines are my 2 favorites hands down
Forty years ago my company group was taking a SWA flight home, a first for us. Our schedule was departure in 40 minutes but there was no plane at the gate. Five minutes later a plane arrived and our leader was rightly concerned that we would leave on time. After all we were used to UA AA taking at least 90 minutes to turnaround. So he asked the gate agent when we would depart. She said ON TIME! Boss replied NO WAY! She Said WATCH US! ... On time it was and I became a LUV flyer ever since. A List Companion Pass and so on....
super cool video ...great to know I love southwest airlines
JAL airlines is wonderful! Despite being in economy, the attendants were so courteous and polite. After the meals, they served hot miso soup and green tea.
7:04 Agreed, Coby!
Fun info... they were close to creating an international airline with 50 787's and an option for 50 additional. It was going to be all one class and along the lines of Delta Comfort or United Economy Plus. Food, simple and basic.
so beneficial love the vids
Southwest has been my favorite airline fo 47 years. While I like Delta and United I LUV Southwest.
I try to fly SW when Possible. Love the customer service!
Coby’s videos are the only thing getting me through covid
In addition to the fact that their base was at Love Field in Dallas, the LUV stock symbol may also stem from the fact that in some of their early advertising they referred to themselves as "The Love Airline". I can't remember whether or not those ads pre-dated "The Love Boat" on TV; it's been a few years, to say the least.
Dang that's a beautiful livery 6:17
I really find your content very interesting. 🤩
SW is prolly my favorite airline simply because I remember my dad used to be a mechanic working on their planes, and since I was a kid everyonce In a while I'd get to go with him and check out the planes in all stages of complete to scattered into a million pieces.
I'm a huge fan and loyal customer of Southwest airlines since 1997. I've flown on Southwest twice from Columbus Ohio my hometown to St. Louis. 1997 & 2005. This January. I'll be flying to Orlando on Southwest flying on a Boeing 737-800 for the first time.
Last I heard, SWA was still the only US carrier that does not charge fees for carry-on baggage. I hope this does not change!
I live near KBUF and during this whole pandemic, I've been seeing mostly southwest flying in/out of the airport. On a side note, JetBlue has about 8 aircraft parked there on the sidelines.
For me, when the going got tough, Southwest gone and went... bailed on me and my family. Delta Airlines were the only ones flying... and came through for me. Not Southworst.
They don't waste money on stock buybacks
🤣 and do they actually not do it?
I fly Southwest most of the time because the most convenient airport to me is Manchester-Boston Regional, and Southwest utterly dominates there. They only have frequent direct flights to a few places: BWI, Chicago Midway, Orlando and Tampa. But BWI (or the DC area in general) happens to be a place I want to go frequently, and Midway works OK as a hub to get elsewhere in the US.
I've noticed they don't participate in most of the fare-aggregation websites--you have to go to their website to buy their tickets. But they usually offer *extremely* competitive deals, so it pays to check first.
I personally haven’t flown Southwest but it does seem like a great airline. The best ones I’ve flown so far are Delta and JetBlue.
I believe Virgin America was also good when it existed and I’m not sure how Alaska is though.
3:10
actually it operated boeing 727s for a few years in the 80s
great video..was nice to see EVA AIR....anoher great carrier
Epic job application!
Thanks Mate !
Gracias, otro fantástico video.
Coby you are the best youtuber I have seen ever
awe shucks
I hate going through Atlanta but I sure love Delta. Their seats are just more comfortable imo.
Flying from Love Field to Midland several years ago the flight was only half full. The announcement said "I want every window seat filled. When we push back from the gate everyone look out the window so the other airlines will think we are profitable" :-)
Air Nz gotta be my favourite airline
Never flown Southwest Airlines but I really love Alaska Airlines. 💘
Your channel coby is the best on RUclips#coby explained🙏🙏🙏
I appreciate that!
you deserve to have million subscribers
I love South West... East or West South West is the best. Whenever I travel with in the US. This is the airlines I always take. They are very good and helpful. Hope that they continue to remain this good and not like other carriers who charge you for everything.
I love Southwest - no charge for a checked bag!
Hello yes I'm watching hopefully our airline stays for a long time 💛💙❤️
I work for SWA and I do photography.
3:13
They did briefly operate 727s.
It would be funny if Southwest started to expand after the pandemic to other parts of the world.
I wouldn't mind, though. Not that there is a lot of lowcosters here in Russia
It woul be Cool*
They would be crushed in eroupe where easyJet and Ryanair can offer flights for literally 20 dollars
I had no idea Southwest was that good and loved. I don’t think I will ever get a chance to try them out, but I am glad there are some good guys still in the American market.
I live in Maryland, which is a huge market for Southwest. I can say that aside from their moronic boarding process, they are a fantastic airline.
I always fly Southwest if they fly where I'm going. Great experience. Check in is fast. Planes are new and clean unlike Delta. Employees are friendly. Good prices.
1:44 Southwest Does Not have IFE screens, never has. Otherwise, excellent video as always Coby!
I was wondering about that. LoL
47 years is long long time for any company just to exist, let alone being profitable in every one of those 47 years and in hyper cutthroat low profit margin airlines industry! Respect !
Southwest is amazing. It's my dream to work for them ❤️
The went out of business this year because of covid but I still got to give LIAT
3:10 plus a couple of leased 727s but that’s about it
Insane profitability at customer's expense. I got stranded in Orlando and could not get back to Buffalo. Southwest said it was a weather related incident but it turned out to be a labour disruption. Found this out from one of Southwest's employees at a gate. In the end I had to get Delta Airlines to get me home - cost me an additional $1000 (additional flight, hotel stays and meals for my family for several days). They would not owe up to their own issue... so for me, this airline is more like `Southworst'.
I love wizz air. A European budget airline. Could you please maje a vid about them :)
Coby pls upload more videos. Maybe 2 vids every 3 weeks? Here's another question: How does Air France-KLM save money by using sustainable aviation fuels?
I'm uploading as fast as I can I promise!
Thx! Quality over quantity, I should have known that.
@@tanjiayang3857 Everyone: (looks at Swiss001) "Yeah"
I’ll be flying them for the first time in November
Living equidistant from Love Field and DFW, I much prefer Southwest. They’re not perfect, but they’re a step above the rest when it comes to customer service, friendliness, perks, and overall experience. As someone who will never pay for a first class ticket on a domestic flight, the all economy setup is no issue to me. I’ve never had a SW flight delayed except for weather, and even then they were incredibly apologetic even though it was out of their control. Rapids rewards members on that flight got a certain amount of points for our “suffering” though I can’t remember how much
: Coby in intro everbody loves southwest
(Also Says not everyone likes the other American airlines)
:sad United, delta, and american noies
maybe if they weren't such garbage :/
I mean ur not wrong
Hey correct me if I'm wrong. Southwest is one of the biggest operators of the 737 Max and should have be receiving a considerable compensation till last month for the grounded aircraft from Boeing.
That would have helped them a lot.
I think Southwest is a fantastic airline and recommend them. However, my favorite airline is Delta. I've just had a better experience on Delta and I enjoy the perks of the lounges and choosing a seat.
While I am Gold Medallion on Delta, Southwest is still my go-to back up airline, especially for short hops on the west coast (great network out of Burbank to help avoid LAX). I actually recommend Southwest over Delta for those who are inexperienced and/or don't fly as often as (and don't need miles for international trips). Other than stressing about your boarding number for the open seating policy, flying Southwest is generally low-stress. Just nice not having to worry about being stuck in the back of boarding and paying for bags without having to fly a bunch or get their credit cards.
@@JuanWayTrips That is a very good point. I am invested, happily, with AmEx which provides a lot of benefits with Delta.
My top 3 are Delta, Jetblue, and Southwest. Although I did fly on American/and United back in Feb/Mar. to Hawaii and I had no issues with them either.
Southwest is the best airline ❤️ in the world ✈️ 🌎
My favorite airline is probably ryanair. Yes they have terrible customer satisfaction but they have enabled me to yolo decide to go somewhere and discover the world. I mean I have flown with them sometimes for less that what a local cab costs to a nearby city...
I liked SWA as a passenger and LUV'ed it as a 10 year employee in reservations. They're the Real Deal. Good, smart, dedicated people across the board and at every level.
That being said, it's very different from its heyday under Herb & Colleen. It has to be, of course, (just like Disney had to move beyond Walt & Roy after their deaths) but it does sadden me.
That's our airline 😊😊 and I'm not even american nor do I live there
3:08 Actually, Southwest operated 727s at two points, one via lease from Braniff (1978-1980) and the other one from People Express (1984-1985)
(they also considered the 717 after buying AirTran however they aren't in the fleet and are being leased to Delta, and they are currently considering buying the A220 which doesn't make sense because they operate an All-Boeing fleet)
The A220 was just a negotiation tactic. Southwest is now finishing another deal for hundreds of more MAX's.
Southwest! My airlines 😊
The online airline I trust to keep me safe during COVID
Not Spirit huh?
Love Southwest. Even during normal times. We don’t fly a lot. Maybe 2 to 4 times a year before the pandemic. I also have there cerdit card and use it for about everything. The last time I flew was early March of 2020. I had something like 35,000 points as they call it. Now in. January 2021 I have over 90,000 points so when my self or both my wife again we will be using those points. Love the customer service. Not having to pay for your bags. In general on time flights. What’s not to like. Can’t wait to fly them again 😀✈️🛫🛬
My favorite airlines is Olympic Airways🇬🇷🇬🇷..where i joined the MHC
I Love SWA. I take at least 4 flights a month. Frequent changes of time or destination would be catastrophic for me. But SWA solves that. And the free bags policy is a big money saver. Factor that into the price of a ticket and the 'higher price' evaporates.
And the Announcements can be hillarious.
One small thing. Southwest did operate 3 727’s for a short period of time. I believe they acquired them from buying northwest I think. And just lately they announced they will be flying to ORD! Excellent video!
arent 727's earlier versions of 737's
@@fishyswirlgaming5741 they are comparable in size however they have 3 engines of the tail instead of 2 on the wings. Training most likely was different so a 727 pilot could not a 737 (unless trained). It was ok for southwest because with the purchase of the northwest I think they basically had all the employees carry over.
ok thank you
Jet2 is my fav...
I live by midway so southwest is what I grew up with
One time I forgot to check my large bag and ended up having to go ahead and go through security with it because the line was long and there was no time to go back. It was way too big for a carryon, and it was one too many anyway. I didn't know what would happen to me. I told the gate agent and they sent me down jetway and told me to tell a flight attendant. The one I told said "I'll take care of it, give it to me." He took it out to the ramp guys and told them they had to check it. I'm pretty sure they didn't want to, because he was gone a while. He came back about 15 minutes later and handed me a bag claim ticket. He told me he had to argue a bit to get it done. I was incredibly relieved that I didn't have to miss the flight. This is only a small example of why people love SW. Their employees are honored and rewarded for going above and beyond for passengers and they do it all the time. I will never fly any other airline unless I can't get where I'm going on Southwest.
There are a few more reasons that Southwest is so successful vs the legacy carriers that are not so airline industry-specific. If I had a channel, I'd explain...
My family and I LUV SWA.
Dang, I never got to see a low-cost airline like Southwest in this perspective! I always thought that they're just "one with the pack" with Spirit, Frontier, JetBlue etc. etc.
Every airline in the world copies Southwest
Southwest Airlines is awesome
Let Coby explain 👍👍🤣😂😅😂
Make a video about volaris, is one of the only airlines that still being profitable durning the crisis