Southwest Airlines faces several risks in its business operations, including running flights with only half of seats filled, which could lead to low revenue. It also engages in price wars that sometimes force it to keep ticket prices low. Additionally, Southwest is susceptible to rising fuel costs, economic downturns, and increasing labor costs from contract negotiations. The airline also faces greater competition from other major carriers that are financially healthier as well as rapidly growing low-cost carriers. Despite these risks, Southwest has maintained its position in the market through strong customer and employee loyalty.

1. RISKS THE SOUTHWEST
AIRLINES TAKES.

2. 1. SOUTH WEST AIRLINES HAVE TO RUN THEIR
FLIGHT EVEN IF ONLY HALF OF THE SEATS ARE
FULL.
IN SUCH SITUATION GOES ON PREVAILING, THE
AIRLINES HAVE A RISK OF EARNING REALLY LOW
REVENUE.

3. 2.PRICE WARS
South West Airlines is at constant price wars with its competitors.
In such price wars, sometimes South West is forced to keep the prices of
tickets really low.
Thus in this case too the airline runs a risk of eventually earning low
revenue

4. Southwest faces the same risks that other airlines face,
such as the potential for rising fuel costs or a downturn in
the economy.
3.FUEL FIGHTS

5. 4.LABOUR
Southwest may also face continued pressure from rising
labor costs. Most of Southwest’s major union contracts
are open for amendment, and the ultimate cost impact
from those negotiations is uncertain at this time.

6. 5. NON-OPERATING AIRPORTS
Southwest has to face off with bigger Delta Air Lines Inc. at
its primary hub of Atlanta, the world’s busiest airport and the
only major U.S. city Southwest doesn’t serve.

7. 6.COMPETATION
Concerns also include increased competition both from
Southwest’s large network rivals that are now financially
healthier than they have been in the past, and from rapidly
growing low-cost carriers.
 Southwest had long been the only major U.S. air carrier to
be considered investment grade. But Fitch in June added
Alaska Air Group, parent of Alaska Airlines and Horizon Air,
to the elite list.

8. Despite off all these risks southwest airlines
didn’t
lose its place till today!
It was and is being loved by both customers and employees.
That is what is making southwest airlines successful.

9. RECAP:
1.South West Airlines have to run their flight even if only half of the seats are full. In such
situation goes on prevailing, in that case the airlines have a risk of earning really low revenue.
2.South West Airlines is at constant price wars with its competitors. In such price wars,
sometimes South West is forced to keep the prices of tickets really low.
3.Southwest faces the same risks that other airlines face, such as the potential for rising fuel
costs or a downturn in the economy.
4.Southwest may also face continued pressure from rising labor costs.
5.Concerns also include increased competition both from Southwest’s large network rivals that
are now financially healthier than they have been in the past.
6.Southwest had long been the only major U.S. air carrier to be considered investment grade
Southwest will also face off with bigger Delta Air Lines Inc. at its primary hub of Atlanta, the
world’s busiest airport and the only major U.S. city Southwest doesn’t serve.
Credits: Images.google.com

10. A Presentation by Sravya Tanmayee

11. SRAVYA TANMAYEE, IIITDM-kancheepuram
during an intern by
Prof. Sameer Mathur ,IIM Lucknow

12. Thank you!