Here’s what Dallas-Fort Worth’s two big airlines have in store for travelers
Fort Worth-based American Airlines and Dallas-based Southwest Airlines employ more than 40,000 people in North Texas and are the two primary carriers locals look to when booking travel.
So what does the future hold for these airlines, and what moves are they making to make sure customers keep flying with them for the long haul?
Executives from both carriers spoke at the Skift Aviation Forum in downtown Fort Worth on Dec. 3, laying out their priorities for the new year.
American Airlines
David Seymour, American’s chief operating officer, and Heather Garboden, chief customer officer, spoke to forum attendees about American’s push to improve the customer experience.
Garboden said the big focus will continue to be on premium products, like first- and business-class seats and airport lounges. That came as no surprise, as there is a huge demand among U.S. travelers for premium offerings, even as cost-conscious travelers are flying less.
In response, airlines are trying more and more to appeal to big spenders. That shift is being driven in large part, Garboden said, by younger travelers who are willing to pay more for a heightened experience.
To illustrate that demand, on American’s new Boeing 787-9P (“P” for premium), more than a third of the seats are premium seats, said Garboden. Looking ahead, American plans to add up to 50% more premium seats on its domestic and international aircraft.
Garboden said increasing these offerings, along with adding and expanding airport lounges, will directly impact American’s bottom line.
Southwest Airlines
Tom Doxey, Southwest’s chief financial officer, sat for a discussion with aviation journalist Brian Sumers, during which Sumers grilled Doxey on several topics.
One was layoffs. In February, Southwest laid off 1,750 Dallas-based employees, the first and only layoffs in Southwest’s 54-year history.
Doxey said that was a tough time, but he didn’t believe there would be additional layoffs anytime in the near future.
Similarly, American laid off a limited number of corporate employees in November.
Like his American counterparts, Doxey said customer comfort would be a priority at Southwest going forward. Southwest is refurbishing its fleet interiors with new seats, more legroom and larger overhead bins. The first aircraft to incorporate these upgrades, a Boeing 737 Max 8, entered service in October.
Additionally, Southwest is in the process of replacing its Boeing 737-700 and 737-800 aircraft with newer and more efficient 737 Max 8s and Max 7s.
Beginning Jan. 27, Southwest will begin assigning seats after decades of boarding customers on a first-come basis. Sumers questioned whether that, among other things, indicated a shift toward Southwest becoming too much like the other U.S. legacy carriers after years of boasting a unique culture and a passionately loyal customer base.
Doxey disputed that, however, saying the airline’s culture is as strong as ever, and customer loyalty remains high.
Earlier in the day at the Skift forum, industry expert Jay Shabat, who writes for Skift’s Airline Weekly publication, showed the latest profitability numbers for the major U.S. airlines. Of the big four (American, Southwest, United and Delta), Southwest came in last.
That, Shabat said, was due in part to Southwest not having a premium offering (Southwest aircraft don’t have first-class cabins) at a time when that is a profit driver for airlines. He also said a lack of long-haul overseas routes hurts Southwest, especially now when a stronger U.S. dollar means more Americans are traveling internationally.
Shabat said those factors are hurting all low-cost carriers, not just Southwest.
Regardless, Southwest remains the third-largest U.S. carrier in terms of number of seats (behind American and Delta). Shabat’s data showed that Southwest has grown its seat capacity by 11% since 2019, while American’s seat capacity has grown 6%.
Marketwise, Dallas-Fort Worth ranks No. 10 in total airline seat capacity, according to data Shabat presented. Elsewhere in Texas, Austin was No. 2. That, Shabat said, is driven partly by business relocating to the state.