Southwest Air is expanding

By: Miguel A. Rodriguez

16:38, 13 October 2020

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Southwest to fly out of Chicago and Houston starting 2021

While some airlines are looking for ways to keep themselves afloat by cutting costs and furloughing employees, others are looking to expand.

Southwest Airlines announced that starting next year, it will begin operating from two new airports – Chicago O'Hare and George Bush Intercontinental.  By doing this, Southwest will intensify its competition with United Airlines.

"Today's announcement furthers our commitment to both cities as we add service to share Southwest's value and hospitality with more leisure and business travelers," said the company's CEO Gary Kelly.

Unlike any other air carrier, Southwest is looking for ways to avert job cuts and layoffs. To do so, it asked the labor unions to be on board with pay cuts as the federal aid expired on October 1. Southwest has, in total, almost 9,000 employees.

Despite the cuts and the upcoming expansion, Southwest expects its revenue to remain 70% lower than average.

Following the announcement, Southwest stock price closed 1.36% lower.

Read more about how the aviation industry is coping with the pandemic's effects here and here!

Sources: thestreet.com, finance.yahoo.com

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This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided.