1. How did Southwest Airlines remained
Profitable?
By: Aakash Bhagat

2. Objective
 To observe and understand the different tactics which were
used by Southwest Airlines that helped them to achieve the
success which other airlines hope to.

3. About Southwest Airlines Co.
 Major U.S. airlines.
 World’s largest low-cost carrier company.
 Founded in 1967 and adopted its current name in 1971.
 IPO was offered in 1971.

4. Fight Planning
 Point-to-Point Flying
 High frequency
 Short Haul

5. Single PlaneTactics
 Southwest is the world’s largest operator of Boeing 737.
 In 2014, the airlines recorded 680 Boeing 737 in his fleet.
 Low maintenance cost.

6. Fuel Hedging
1. Use of fuel derivative instruments.
2. Hedges based on real commodities
1. WTI c rude, Brent crude, GulfCoast jet fuel
2. Refined products : Heating Oils and Gasoline
3. Profit of 28 million in 2014, compared to 118 million loss in
2013.

7. Southwest Common-size Income
Statement

8. Conclusion
 Southwest is a company with the potential to reach the
heights that no company had ever attained.
 Many companies around the world are now trying to follow
the path that Southwest had walked in it’s past, for instance
Indigo and Spice-jet.
Q.E.D.

9. Thank you