Southwest: New initiatives
plus tax breaks — June 2018

Recent weeks have been tough for Southwest Airlines, the largest US carrier in terms of domestic passengers. Southwest suffered a horrific accident on April 17, in which debris from a failed CFM56-7B engine broke the window of the 737-800, leading to a passenger being partially sucked out and dying from her injuries.

The effects have been severe in terms of a reduction in bookings and unit revenues. Southwest’s shares have fallen sharply and its first-half financial results will fall short of original projections.