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Southwest expanded like wildfire during 2021. Here's its plan for 2022.

Nov. 18, 2021
4 min read
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Southwest expanded like wildfire during 2021. Here's its plan for 2022.
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Southwest put its name on the map in 2021. Literally.

The airline expanded to 18 new markets in 2021, ranging from new but unsurprising destinations like Mexican resort towns, to unexpected markets like Syracuse, New York (SYR), and Bellingham, Washington (BLI).

The airline's growth was fueled partly by the return of capacity as the Boeing 737 MAX was cleared to return to passenger service, along with reduced demand for travel overall allowing the airline to reduce frequencies on some routes and redirect that capacity to new markets where Southwest is strategically bolstering its presence in existing markets – like Austin, Texas (AUS).

But the airline flew too close to the sun.

Travel demand surged back faster than expected, and Southwest — already short-staffed due to pandemic-driven early retirements, buyouts and leaves of absence — was left stretched too thin. It added as much capacity as possible for the staffing it had to maintain its network, but eventually reached a tipping point in October, when a series of relatively minor events — afternoon thunderstorms around Orlando, short-staffing at an air traffic control center in Jacksonville, a coastal military exercise — coalesced to cause the airline's network to collapse.

Elsewhere in Austin: American expands in Austin once again, adds 2 new routes, more flights

Southwest canceled more than 1,800 flights over a weekend, with thousands more delayed, racing to get planes and crews back into position as days ticked by and stranded passengers fumed.

With travel demand expected to recover and grow even further in 2022, the airline plans to hit the brakes on expansion, Southwest chief commercial officer Andrew Watterson told TPG during an interview in Denver earlier this month, where the airline was celebrating 15 years of operations in the Rocky Mountain hub.

Instead, Southwest plans to shift its focus to servicing the network it has already.

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"For next year and the year after, the No. 1 objective is to restore the network we had pre-pandemic," Watterson told TPG. "Especially in our business-type routes, because those are the ones that have less frequency than they do before."

More: Exclusive: Southwest wants business travelers and will double down on them as it recovers from the pandemic

In some ways, the pandemic offered a chance to accelerate the airline's expansion plans, hence the plethora of new routes this year.

"What we've done," Watterson said, "was go into a lot of new stations to broaden our network. And as a consequence, what we did was pull forward a lot of new cities we would have done over the [next several] years."

While Watterson won't say "never," Southwest's further expansion plans are likely to be muted for the next few years, since it jumped on the expansion ahead of schedule.

"We're not necessarily looking for new geographies. Not saying there'll be zero, because something could happen, but right now that is well down on our priority list."

According to Watterson, that was already the plan before Oct. 8. But the flight-cancellation episode of that weekend put the need to bolster the operation and reassure customers front and center — particularly as the airline seeks to expand its base of business travel customers, who need a degree of reliability and flexibility before they'll commit to flying the carrier.

"Customers value time, and that's why frequencies are a great offering for us," Watterson said.

One thing that will help, Watterson said: new planes.

Elsewhere in Austin: How airline route maps changed in 2021, and what to expect for 2022

The airline is scheduled to take delivery of 114 planes in 2022. Of those, more than 70 will go towards growing the size of fleet (the rest will replace aircraft that are due to retire).

The new direction comes as a new CEO is due to take over. Longtime Southwest CEO Gary Kelly will retire in early 2022 and will be replaced by Bob Jordan, currently the airline's executive vice president of corporate services.

The shift in focus from this year's expansion to next year's rebuilding of frequencies does not reflect the regime change, Watterson stressed.

"I would say that Bob and Gary have worked together for so long and so well that internally, it's really quite seamless."

Instead, it's the natural result of a year of aggressive expansion, condensing potentially years of building plans into just 12 months.

Southwest has gotten where it wants to go. Now it just needs to make sure it can keep getting there — even when there's bad weather in Florida.

Featured image by DAVID SLOTNICK/THE POINTS GUY
Editorial disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airline or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

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  • Intro Offer

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  • Annual Fee

    $325
  • Recommended Credit

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Why We Chose It

There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)

Pros

  • 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
  • 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
  • Packed with credits foodies will enjoy
  • Solid welcome bonus

Cons

  • Not as useful for those living outside the U.S.
  • Some may have trouble using Uber and other dining credits
  • You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
  • Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
  • Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
  • Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
  • $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
  • $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
  • $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
  • $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
  • Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
  • No Foreign Transaction Fees.
  • Annual Fee is $325.
  • Terms Apply.