Southwest Airlines SWOT Analysis

• It uses only the Boeing 737 as its aircraft, so it has a single producer.

• A minority of the tickets are purchased through agents.

Opportunities

• There are still many National and International markets that are still not tapped, and Southwest can expand to those markets.

• There are many industrial opportunities for development in the airline industry.

• It can get the latest technology that would give it a further cost effective lead, as well as providing new services/products.

• Hispanic population growth is regarded as a plus point that will make the young generation potential customers for the airline.

• It can haul on longer flights, to cover more expansion.

• It can also tap the business travel option for the business class passengers, and offer private flights.

Threats

• Online ticket reservation system by the competitors.

• Decrease in the air travel demand.

• Fuel price hauls and fluctuations are a major reason for the Southwest for not incurring more profitable operations. (Southwest counters this by strict financial spending on fuel i-e fuel-hedging).

• Terrorist activities make it more of a threat for air travel.

• Annual airline security cost increment.

• Limitations regarding the terms and legal obligations.