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Kaltbaum Capital Management President Gary Kaltbaum, ‘Varney & Co.’ Analyzes Nvidia and Southwest Airlines on the topic
Southwest Airlines According to an industrial expert, it may lose a part of leisure travelers by the final decision to start charging for checked bags.
It was a policy – with open seating – in the variation of the carrier for more than 50 years and applied to a wide range of rivals Budget conscious travelers. Southwest, Starting from May 28, only certain loyal and business class customers will offer only free checked bags.
“The idea of adding the batt fees can work well in a table, there is a risk of losing the share of the southwestern resting market,” Peter McNally, the global sector head on the third bridge, told the Fox business.
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After a few months after the company, after a few months, after the commissioning sessions and the premium seating options offers premium seating options, he offered another action designed to load higher rates for premium seats along the entire network.
Both moves stressed that the company forced the financial problems to re-evaluate it. The Southwest was also among the several major US Airlines this week, the quarterly financial expectations that fought a softer demand than industrial, industrial, economic uncertainty and other factors.
Southwest Airlines Boeing 737 max 8 aircraft is seen at a door parked at a door in Baltimore-Washington International Airport, Maryland. (Getty Images / Angus Mordant / Bloomberg through Getty Images)
With the latest change, you can compete for flights to the southwest length, but it is not completely.
Southwest does not usually travel a day or night traveling and checked luggage. This type will continue to offer the most competitive tariffs in the southwestern market, for quick visits.
“Four people who are already flying to Orlando in the south-west have more cost-effective competition choices when adding them to bag fees.”
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Bag policy change comes after the company will start to offer seating and premium sitting options designated in all flights. (Getty Images / Angus Mordant / Bloomberg through Getty Images)
For example, “Great Three” Airline – Delta, American and United – “When presenting some premium options, they have strong loyalty programs that are more competitive in the US recreation market,” McNally said.
| Ticker | Safety | Last | Change | Change% |
|---|---|---|---|---|
| Luv | Southwest Airlines Co. | 31.00 | +0.90 |
+ 2.99% |
Southwest also said this week that it also plans to provide a new main tariff for the lowest price tickets purchased before or after submitting more premium sitting with additional legroom for higher payments.
“Although our experts see more award options (such as additional meek), these opportunities will play the reconstruction of the cabins,” McNally said, but “this is to increase income for these bags.” ”
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However, McNally said that the main economic tariff will be a fair standard, because the ticket prices will not reduce the prices.
| Ticker | Safety | Last | Change | Change% |
|---|---|---|---|---|
| Avand | American Airlines Group Inc. | 10.67 | -0.26 |
-2.38% |
| Ual | United Airlines Holdings Inc. | 69.90 | -2.56 |
-3.53% |
| Back | Delta Air Lines Inc. | 43.92 | -1.38 |
-3.05% |
“The low price of the airline was lower at the price. The spirit was bankrupt, after all, due to labor prices.
In the last few years, fuel costs presented a little flexibility, but the ability to offer extremely low tariffs is still limited. McNally said.
