Southwest Airlines Bucks The Trend

Recently several airlines have revealed that they are experiencing millions of dollars in losses. They blame this on the rising costs of jet fuel. But this week, Southwest Airlines bucked that trend by reporting a second quarter profit of $321 million. In spite of the rising fuel costs, their profits are actually larger than the second quarter profits they posted last year ($278 million).

In an effort to try and cover their huge losses, most other airlines have initiated a host of extra fees their customers must pay. These include charging for checked luggage, aisle seats, extra leg room and beverages. But Southwest hasn't added any of these fees, and they still turned a nice profit. How did they do it?

They were able to do it by contracting to lock in lower fuel costs with their suppliers. A little planning and foresight can go a long way. They are currently raising ticket prices gradually at some locations, and are instituting a more expensive business fare.

This is just the difference between an airline who's leadership plans for the future, and other airlines who are constantly trying to catch up with what happened yesterday.