Southwest Continues To Exploit New Love Flying While Upping Competitive Pressure In Dallas

March 19, 2015
Both American and Spirit have cited pricing actions in the Dallas market as a factor driving down unit revenue growth during the first quarter.

Southwest Airlines’ growth from Dallas Love Field is continuing unabated during 2015, reflected in estimates that it will serve 50 destinations from the airport with 180 daily departures in Aug-2015.

The growth will no doubt continue to pressure other airlines operating in the Dallas market at least throughout 2015. Both American and Spirit Airlines, which operate from Dallas/Fort Worth, have cited pricing actions in the Dallas market as a factor driving down unit revenue growth during 1Q2015. American operates from DFW to nearly every market that Southwest has introduced or is adding from Love Field, which will result in some promotional pricing pressure continuing throughout most of the year.

It is tough to say when things will return to normal in the Dallas market. American has indicated that the dynamics could normalise in 2016; but it could take a bit longer for the capacity introduced by Southwest to be absorbed.

More details here.