If you are a regular traveler who travels or fly nonstop than you are more profitable than others who are not or for connect; and that’s why Southwest Airline earned much revenue than AirTran Airways for those regular passengers.
Changes airline to AirTran may generate more than $750 million to $1 billion annual revenue for Southwest Airlines, said Gary Kelly, Chief Executive Officer of Southwest airlines.
Southwest Airline Earned More Than AirTran Airways
In this year’s first quarter, Southwest reaped 11.99 cents for his each passenger for a mile, whereas AirTran do this with 10.43 cents.
Although AirTran has cheap rate than Southwest, but there are only 35% flew on this airbus whereas Southwest contains 75% passengers. Again Southwest passengers fly nonstop but among AirTran passengers 65% fly to make connection.
Recently Southwest Airlines buy AirTran which give Southwest access to the biggest U.S. city Atlanta and adding new AirTran’s Boeing Co. 717 jets.