Carrier seeks DOT route authority to link its LAX International gateway to Cancún, Puerto Vallarta, and San José del Cabo/Los Cabos, México
DALLAS, June 1, 2016 /PRNewswire/ — Southwest Airlines Co. (NYSE: LUV) today filed an application with the U.S. Department of Transportation (DOT) to extend the carrier’s low fare reach into México markets with new international service from Los Angeles International Airport (LAX). Southwest is proposing new service to México: twice-daily flights to Cancún and San José del Cabo/Los Cabos, and once daily service to Puerto Vallarta to begin Nov. 6, 2016, contingent upon route authority approval by the end of this month. Shortly following approval, the carrier intends to offer the flights for sale on Southwest.com.
According to projections by the Campbell-Hill Aviation Group, an economic analysis firm retained by Southwest, Southwest’s new competition in the three LAX – México markets could reduce fares more than 20 percent below average fares on the routes today, increase total traffic on the routes by more than 500,000 passengers each year, and save passengers $50 million annually in reduced fares – another example of the Southwest Effect of lowering fares and increasing traffic in international markets. Southwest currently offers daily service from LAX to Liberia, Costa Rica and serves four points in México from eight other U.S. cities.Southwest continues to plan for 2016 year-over-year available seat mile (ASM) growth in the 5-6 percent range.*Southwest is the only major U.S. airline to offer bags fly free® to everyone (first and second checked pieces of luggage, size and weight limits apply; some airlines might allow free checked bags on select routes or in qualified circumstances), and there are never reservation change fees, though fare differences might apply.
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This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Specific forward-looking statements include, without limitation, statements related to the Company’s network and capacity plans, opportunities, and expectations. These statements involve risks, uncertainties, assumptions, and other factors that are difficult to predict and that could cause actual results to vary materially from those expressed in or indicated by them. Factors include, among others, (i) the impact of economic conditions, consumer behavior, fuel prices, actions of competitors (including without limitation pricing, scheduling, and capacity decisions and consolidation and alliance activities), and other factors beyond the Company’s control, on the Company’s business decisions, plans, and strategies; (ii) the impact of governmental regulations and other governmental actions related to the Company’s operations; and (iii) other factors, as described in the Company’s filings with the Securities and Exchange Commission, including the detailed factors discussed under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2015.
SOURCE Southwest Airlines Co.