Proceedings of the 2025 International Conference on Financial Innovation and Marketing Management (FIMM 2025)

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Cost-Efficient Operating Models in the Airline Industry: A Case Study of Southwest Airlines

Authors
Hanyu Zhang1, *
1Beijing Royal School, No. 11 Wangfu St. Beiqijia Town, Changping, Beijing, 102209, China
*Corresponding author. Email: Zhanghanyu@st.brs.edu.cn
Corresponding Author
Hanyu Zhang
Available Online 3 November 2025.
DOI
10.2991/978-94-6463-874-5_57How to use a DOI?
Keywords
Low-Cost Carriers; Airline Industry; Southwest Airlines; SWOT Analysis
Abstract

This paper examines the business model of low-cost carriers (LCCs), using Southwest Airlines as a case study. By analyzing Southwest Airlines’ operational strategies, this paper identifies key factors that have enabled the airline to maintain profitability and market position in the competitive airline industry, especially during the post-COVID-19 recovery period. A SWOT analysis shows the internal and external competitive environment of Southwest Airlines. The strengths lie in its operational efficiency and cost-control strategies, customer loyalty, and company culture, while its weaknesses include limited revenue diversification, lack of premium services, and dependence on a single aircraft type. The analysis also reveals emerging opportunities in growing demand for affordable air travel and AI-driven operational improvements. However, Southwest Airlines faces potential challenges from rising competition among LLCs, fuel price volatility, and uncertainties due to environmental regulations. These findings provide valuable insights for airlines seeking to improve their business models and maintaining profitability in a competitive industry.

Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2025 International Conference on Financial Innovation and Marketing Management (FIMM 2025)
Series
Advances in Economics, Business and Management Research
Publication Date
3 November 2025
ISBN
978-94-6463-874-5
ISSN
2352-5428
DOI
10.2991/978-94-6463-874-5_57How to use a DOI?
Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Hanyu Zhang
PY  - 2025
DA  - 2025/11/03
TI  - Cost-Efficient Operating Models in the Airline Industry: A Case Study of Southwest Airlines
BT  - Proceedings of the 2025 International Conference on Financial Innovation and Marketing Management (FIMM 2025)
PB  - Atlantis Press
SP  - 488
EP  - 493
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-874-5_57
DO  - 10.2991/978-94-6463-874-5_57
ID  - Zhang2025
ER  -