Fly, You Fools! Southwest Airlines Cuts Flights Amidst Economic Uncertainty!

A Shadow Falls on Southwest

Hoom! Even a wizard as old as I am can see the winds of change buffeting Southwest Airlines. They tell me these mortals that the airline is reducing its capacity in the latter half of this year. 'Why Gandalf?' you might ask. Well it seems fewer hobbits elves and even dwarves are booking flights within the borders of this... America. A worrying sign indeed as ominous as the shadow of Mordor creeping across the land! One might even say it is as if the Balrog himself has taken up residence in their accounts department.

Unit Revenue Flat? Not Good My Precious...

They expect unit revenue to be shall we say 'flat' or perhaps even down by as much as 4% in the second quarter. Flat! Like a well trodden path in the Shire after a hobbit feast! This is hardly the stuff of eagles soaring high above the Misty Mountains. And what's this? They are not reaffirming their guidance for earnings in the coming years? It is as if they are saying 'I have no memory of this place,' like Théoden King under Saruman's spell.

The Economy is Impossible to Predict!

Ah yes the ever shifting sands of the 'macroeconomic uncertainty'. United Airlines and Delta Air Lines those other great eagles of the sky are also scaling back their domestic ambitions. One even called the U.S. economy 'impossible' to predict! Impossible! Hah! I've faced down a Balrog and even *I* wouldn't use such strong words about predicting the future though Saruman did try to peer into the Palantir a bit too much. Such folly! One must be careful when gazing into the future lest one become blinded by the present.

A Glimmer of Hope? Or Just Fool's Hope?

Fear not for even in the darkest times there is always a glimmer of hope. Southwest's first quarter earnings and revenue managed to outpace those Wall Street wizards' expectations! A loss of only 13 cents per share less than the 18 cents they feared! Revenue also exceeded expectations. However 'still a loss' I hear you cry and you would be right though I would rather see them get back on track swiftly and not slowly like a Ent heading to war.

Farewell Free Baggage My Old Friend

Alas it seems they are tinkering with their very foundations! Joining forces with Expedia! Introducing assigned seats! And dare I say it charging for checked luggage! Gone are the days of free baggage for many travelers! This is a dire change like Sauron taking the guise of Annatar to decieve the elves. It is a gambit this change of course. A desperate measure perhaps to appease Elliott Investment Management those dark sorcerers of the financial world who wish to make the airline more profitable. 'One does not simply charge for baggage!' one might exclaim. But alas it seems they do.

CEO Jordan Sees Light at the End of the Tunnel!

Their CEO a fellow named Bob Jordan claims to be seeing 'positive results' from these initiatives. Well let us hope he is not blinded by wishful thinking. Only time will tell if these changes will lead to prosperity or ruin. For even the wisest of wizards can be wrong. As I once said 'All we have to decide is what to do with the time that is given to us.' Let us hope Southwest chooses wisely! I fear this is not the end of it all though for I have a feeling they might be going on...an unexpected journey!