Texas Airlines Take Off in a New Direction

Texas-based airlines American and Southwest are making headlines with their recent strategic shifts. Here's a breakdown of the changes and their impact:

American Airlines Streamlines Routes and Boosts Efficiency

• American Airlines trims five more routes from Austin-Bergstrom International Airport, including year-round nonstop flights to Las Vegas, New Orleans, and Orlando.
• The decision follows last year's 21 route cuts from the same hub.
• These changes are intended to boost efficiency and reduce costs.
• American Airlines also released its Q2 earnings report, boasting its highest-ever quarterly revenue of $14.3 billion. However, the airline is still recovering from stock market setbacks and Significant debt remains.

Southwest Airlines Listens to Customers, Updates Seating

• Southwest announces it will assign seats, a major shift from its iconic open-seating model.
• According to research, 80% of current Southwest customers and 86% of potential customers prefer assigned seating, especially on longer flights.
• In addition, Southwest introduces premium seating options and red-eye flights to enhance its customer appeal.

Industry-Wide Changes and Challenges

• Delta faces a turbulent period due to an IT fiasco, resulting in mass delays, cancellations, and a claimed loss of $500 million.
• JetBlue, once eyeing a merger with Spirit, is now cutting routes and cities, while Spirit embraces premium seating, signaling the end of the traditional budget airline model.

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Beck Andrew Salgado keeps tabs on trending topics in Austin's business scene. Reach out with tips or story ideas at Bsalgado@gannett.com.