Southwest Eyes International Expansion

Within the next few years, Southwest Airlines could be introducing new flights to Canada and Europe, according to the airline’s CEO, Gary Kelly.

Kelly, speaking at Southwest’s annual shareholder meeting in Annapolis, Maryland, noted that 2017 was the airline’s third-best year ever and its 45th consecutive year of profits.

Buoyed by that success, Kelly is enthusiastic about the airline’s future expansion opportunities. “We believe we have as many as 50 additional opportunities to expand our route map in North America and parts of South America. It may take us 25 years, but it is wonderful, of course, to have those kinds of opportunities to grow.

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Currently, Southwest flies to 100 destinations. Of that, 86 are domestic, handling 96 percent of the airline’s traffic, and 14 are international—accounting for just four percent of traffic.

The airline could be especially eyeing new routes to Canada and Europe, as reported by the Baltimore Business Journal. Kelly said that Baltimore Washington International Thurgood Marshall Airport (BWI), which is the airline’s second-largest hub, would be a "logical consideration” as a connecting point to Europe. Flights between Canada and Baltimore would also "absolutely be something we would be interested in considering."

Kelly also told the business publication that routes to Canada and Europe could be more “complicated” for the airline than its existing international routes.

With respect to flights to Canada, Southwest’s popularity with leisure travelers would mean the airline would need to expand their marketing efforts into Canada to attract the Canadian leisure travelers needed to keep the new flights profitable.

While more international flights may be in the cards for Southwest, the immediate focus for 2019 is the airline’s expansion to Hawaii.

“Our goal remains to be selling Hawaii flights by year-end with specific dates, flights and fares coming soon,” Kelly told shareholders. “Flying is subject to FAA approval and certification of extended over-water operations. That work is continuing. It is on schedule. Our Hawaii expansion will be a major focus for Southwest in 2019 as far as our fleet growth is concerned.”

Earlier this year, Southwest debuted 11 new routes, with including six non-stop flights from San Jose, California.

Any expansion of the airline’s route map should come as good news for its loyal passengers, who continue to rate the airline tops in customer service.

Kelly attributes the airline’s success to its employees.

“I'm very proud of our people and I'm very proud of our results,” he said. “I am very confident about these bold aspirations because I believe in all of them.”