Southwest Airlines is Losing the Race?! Family's Gotta Stick Together!

The Only Thing That Matters is Family... and Maybe Revenue!

Alright family Dom here. Heard some rumblings about Southwest Airlines. They're cutting back on flights saying things are uncertain. 'Amid the current macroeconomic uncertainty,' they whine. Sounds like someone needs a dose of Toretto wisdom. In this world you either adapt or you get left behind. It's simple. Just like life they need NOS!

Quarter Mile at a Time One Flight at a Time

Southwest says their revenue might be flat or even down. Flat! That's like saying a Hemi 'Cuda is just 'okay.' They're not reaffirming their future earnings guidance either. That's like chickening out before the race even starts! But hey they beat expectations for the first quarter. A win is a win no matter how small. Still gotta keep pushing. It's not how you stand by your car it's how you race it.

Changing the Engine Mid Race?!

Now here's where it gets interesting. They're changing their business model! Selling tickets on Expedia ending open seating and even charging for checked bags! Charging for luggage? That's almost as bad as disrespecting the family. Someone's been listening to those hedge fund guys. Remember 'I live my life a quarter mile at a time.' Southwest needs to find their quarter mile and stick to it.

Elliott Wants Premium Seats? We Got Premium Values!

This Elliott Investment Management crew is pushing for premium seats lounges and international routes. Sounds like they want to be all fancy pants. But real strength isn't about fancy lounges it's about the heart of the engine. Loyalty respect and a whole lot of horsepower. Southwest needs to show them that family values are the real premium.

Losses Shrunk? Time to Hit the Nitrous!

Okay so they lost $149 million this quarter which is better than last year. Progress but we're not popping champagne yet. Revenue's up a bit. They’re trying I'll give them that. They need to stop thinking small and start thinking family size. We're talking big loud and fast. Like a souped up Charger tearing up the streets of Rio.

It Doesn't Matter If You Win By An Inch Or A Mile

Bottom line Southwest is at a crossroads. They can keep tinkering with the engine or they can remember what really matters: their customers their employees their family. 'It doesn't matter if you win by an inch or a mile. Winning's winning.' They just need to remember that the fastest way to go is always as a team.