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Southwests Q4 call: Wide-ranging changes will result in financial gains


On Jan. 27, Southwest Airlines began flying with assigned seats, thereby completing the final major step that its announced so far in the wide-ranging transformation of its business model. 

Southwests Q4 call: Wide-ranging changes will result in financial gainsNow, the airline expects to reap the rewards of that work to the tune of at least quadrupled profits on a per-share basis for 2026.  
Southwest is forecasting minimum earnings per share this year of $4, up the from the $0.93 earnings per share that it made last year. Both figures are adjusted for one one-time special items, such as labor-contract ratification bonuses and departure packages paid as part of its 15% corporate staff downsizing last spring. 
During the companys earnings call on Jan. 29 to discuss Q4 and year-end earnings, CEO Bob Jordan and COO Andrew Watterson said the actual earnings per share figure for this year could be significantly higher, but the airline wants to gather another month or two of data on the revenue impact of new extra legroom and paid preferred seat assignments, especially for high yielding close-in bookings, before providing a top-end estimate to its outlook.

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American Airlines wants to return to Venezuela


American Airlines plans to return to Venezuela with daily flights to the South American nation, pending regulatory approval.

American Airlines wants to return to VenezuelaAmerican is working with the U.S. federal government on a security assessment and to obtain the necessary permissions. 
The airline is the first to announce plans to resume U.S.-Venezuela flying since U.S. armed forces captured ex-Venezuelan president Nicolas Maduro in a Jan. 3 raid.   
American last flew to Venezuela in early 2019, operating routes from Miami to Caracas and Maracaibo. Venezuelan carriers Avior and Estelar also connected the two countries until May 2019, when the DOT ordered a halt to nonstop U.S.-Venezuela flights.

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United, AA battle for Chicago could be a win for consumers


The escalated battle at Chicago OHare between United and American is likely to hurt the short-term bottom lines of both airlines.

United, AA battle for Chicago could be a win for consumersConsumers, though, should win.
"Anytime airlines fight, theres one immediate winner: passengers," said Scott Keyes, founder of the subscription service Going, which helps travelers find bargain flights. "The single biggest driver of cheap flights isnt distance or city size; its competition between airlines."  
American surged its OHare flying last summer, but the competition has further intensified in the past month. After the pandemic, American built back more slowly than United at OHare, and now American is pushing to get back to pre-Covid volume.

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Americans VP of OHare operations, Ben Humphrey, on its Chicago build-up


After being slow to rebuild its Chicago OHare hub following the pandemic, American Airlines has turned a page. By March, the carrier will have increased its OHare flying by 34% compared to last year, setting off a pitched battle with the airports larger hub operator, United. Airlines editor Robert Silk spoke with Americans vice president of OHare operations, Ben Humphrey, about the airlines Chicago build-up

Americans VP of OHare operations, Ben Humphrey, on its Chicago build-up

Q: Why are you growing so aggressively at OHare?

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