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The Honolulu Advertiser
Posted on: Wednesday, August 27, 2008

Southwest Airlines will cut 196 flights beginning Jan. 11

By David Koenig
Associated Press

Hawaii news photo - The Honolulu Advertiser

Southwest Airlines' plans to cut back on its scheduled flights next year because of a weakening economy and high fuel costs have raised doubts about its growth plans for 2009.

ADVERTISER LIBRARY PHOTO | January 2008

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DALLAS — Southwest Airlines Co., which had resisted the kinds of capacity cuts being made by other carriers, will eliminate nearly 200 flights early next year as it struggles with high fuel costs and a weakening economy.

The move raised doubts about the company's publicly stated goal of growing modestly in 2009 despite the airline industry's troubles.

Now, Southwest will cut 196 flights while adding only six new ones in its schedule that takes effect Jan. 11.

That is nearly 6 percent of the airline's daily schedule of close to 3,400 flights.

Southwest spokesman Chris Mainz said yesterday that some of the eliminated flights, which span Southwest's nationwide network, could be restored later in 2009. Late winter is typically a slow travel period.

"This is a response to a slower traffic period, and we're giving ourselves some operational flexibility in the winter months," he said.

Southwest is better insulated than its rivals from high jet fuel prices because it bought options to get most of its fuel at below-market prices. Still, the airline's fuel bill has been rising, eating into margins at the most consistently profitable U.S. carrier.

Chairman and Chief Executive Gary Kelly said in June that the Dallas-based low-cost carrier hoped to grow modestly in 2009. But he tempered that outlook by saying the expansion plans could be scrapped if oil prices remain high or the economy weakens.

At the time, Kelly said Southwest still planned to add 14 new planes next year. Mainz said yesterday that new planes will be added while older aircraft are retired, keeping the airline's fleet "relatively flat." Southwest has about 530 jets, all Boeing 737s.

Southwest is the only major U.S. carrier to earn a profit in the first half of the year — it has not lost money in a quarter since early 1991. Like other carriers, Southwest has been raising fares to offset fuel prices, and Kelly said more increases are likely.

Southwest serves more than 60 U.S. airports and is not leaving any of them. But it is ending some nonstop service, such as that between Nashville, Tenn., and Oakland, Calif. The carrier is mainly reducing the frequency of flights on routes across its network.

American Airlines, the nation's largest carrier, is cutting about 8 percent of capacity after Labor Day — and up to 12 percent of its domestic flying. United Airlines expects to cut domestic capacity about 16 percent. Delta, Northwest and Continental also have announced cuts.

Southwest shares fell 3 cents to $14.77.