In the queue for the world’s largest low-cost airlines, Southwest Airlines is top-ranked. In fact, it’s one of the largest airlines in the USA—that’s why there are amendments within its current offerings. The Dallas-based carrier recently announced that it will discontinue its free checked baggage service and is now exploring a transition from its current point-to-point network. Meanwhile, it focuses on convenient connections within many US hub cities.
Meanwhile, the Southwest shares a reputation for providing convenient, low-cost air travel to cities within the United States, the Caribbean, and Latin America. The airlines followed up by building a point-to-point network, transporting travellers from A to B without the need for long layovers. This wholesome model is mirrored by several low-cost carriers around the globe, including Ryanair, easyJet, Air Arabia, Jetstar, and Frontier Airlines.
Point-to-Point Travel: A Model That Delivers for Passengers
Meanwhile, the point-to-point travel model is already being introduced by many low-cost carriers, thus helping to avoid traditional hub-and-spoke itineraries. Meanwhile, legacy airlines such as American Airlines or Delta Air Lines operate as hubs—potentially with larger aircraft—ensuring a high frequency of services between the major airports they serve.
Although low-cost airlines traditionally pioneered point-to-point itineraries, allowing travelers not only to avoid layovers but also to waste time on connections, and also for the airlines, resulting in fewer delays. However, for the nervous flyers, point-to-point travel offers less stress and less rushing between flights or missed baggage transfers.
It’s not only instant for flyers but also allows for higher aircraft utilization within quicker turnaround, ensuring the carrier can arrive, disembark, board, and depart efficiently. It’s also a way to avoid costly hub infrastructure for the carrier, over the respective hubs. Fewer transfers can also result in fewer lost bags and reduced labour costs for the carrier.
From Point-to-Point to Hub-and-Spoke: A Strategic Pivot
The concept of hub and spoke travel involves an airline providing a major connecting network, with spoke routes that feed flights to smaller regional airports, ultimately connecting to its larger cities. Likewise, Atlanta is for Delta Air Lines. However, Emirates is quite an iconic international carrier that frequently operates on a highly successful hub-and-spoke model. It’s within all flights that commence or terminate in Dubai, allowing flyers to connect over its many destinations from DXB.
Although the larger legacy airline operates on a hub-and-spoke model, resulting in fewer aircraft needed to serve large cities. It ensures that the airline fills its planes efficiently for connecting operations within its long-haul services. Therefore, let airlines like Emirates ensure that they provide unmatched global coverage, following the airline’s reach to serve smaller markets with precise profit.
Talking about the extensive hub and spoke model—the US legacy carriers like American, Delta, and United Airlines are majorly focused on it—versus point-to-point carriers offering services to one destination. Meanwhile, the hub and spoke allows for premium business class traffic, offering convenient connections and a larger international reach.
Southwest Airlines Shifts Focus From Point-to-Point to Hub-Based Routes
The rising operational costs within many airlines—which were particularly pronounced during post-pandemic conditions—are driven by higher jet fuel prices. Meanwhile, the aviation market in the USA is becoming saturated due to the competitive ratio among the most desirable airlines. Countability among the cheapest airlines in the USA is Spirit and Frontier, competing with legacy carriers like Delta or United.
Southwest is currently exploring ways to operate high-density stations, avoiding the term “hub” to increase daily departures from its busiest airports, including Dallas Love Field, Denver International Airport, and Baltimore/Washington International Thurgood Marshall Airport. All of it operates with almost 150 daily departures connecting the routes to destinations, including Chicago, Phoenix, and Austin.
Southwest’s Big Bet: What’s the Payoff?
Many flyers may question why one of the world’s most successful low-cost airlines still wants to make major changes. The simplest answer is that airline is now enabled to serve new and exciting domestic and international routes in the aviation market. In fact, the provider offers a higher number of services in its busiest and demanding cities.
It’s a unique balance that ensures offering low-cost for the consumer within expanded connectivity. But after the pandemic, premium passenger demand has skyrocketed—travellers are looking for new and exciting ways. That’s an ultimate bang for the carriers.
Talking about the Southwest’s future—the carrier is losing a cost advantage against traditional low-cost carriers—Frontier and Spirit. However, certain do have financial implications within higher operational complexities. Overall, this leads to higher baggage handling costs and increased ground staff availability. It will allow the carrier to leverage more medium-haul destinations.
Southwest’s High-Density Hubs: What Makes Them Tick?
In days, Southwest offers extensive services from 13 hub airports in the US. Although it remains unclear as to where exactly the carrier will operate its high-density model, to and from. It’s almost leveraging on the current point-to-point system—Southwest is strategically positioned as a key carrier offering a high number of direct services between busy cities. At the recent Annual Future of the Consumer Conference, the airline made it clear that it will shake up the way it has traditionally offered point-to-point travel, moving towards a hybrid approach that incorporates greater connectivity.
Future in Focus: Where Is Southwest Headed Next?
In its current business model, Southwest is poised to introduce more connecting flights as part of a strategic shift aimed at attracting flyers. However, for the last 50 years, Southwest has continued to build an airline’s reputation for offering cheap, convenient flights within the USA—undercutting legacy airlines—while providing affordable options.
