Rob Banks
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Southwest Airlines Traffic Dropped 2 Percent Last Month

Southwest Airlines (LUV)'s traffic dropped by 2 percent in August, comparing to the numbers from exactly a year ago.  Strange enough, because another important number, passenger revenue per seat mile, actually went up 4 percent.  Along with many other US airlines, Southwest also increased their capacity by 1.4% in just the previous month.  However, with extra capacity, there seems to be a lower percentage of seats filled.  It makes me feel like the increased capacity was not so necessary.


When we hear Southwest, we think of a discount airline.  As of now, it looks like their goal is to move forward and expand the services to reach at least 48 states.  As of last week, the stock was sitting at $13.10 per share, which is up 28 percent this year.  Not too bad, but I wonder if their prices will still remain below competitors after the expansion.