This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. For an explanation of our Advertising Policy, visit this page.
After Southwest’s first passenger fatality, which occurred after a piece of engine shrapnel pierced a passenger’s window on flight 1380 from New York LaGuardia (LGA) to Dallas Love Field (DAL) back in April, the carrier has been bracing for revenue drops.
Originally it predicted a 1% to 3% drop in revenue for each seat it flies per mile. Now, Southwest is estimating the decreased revenue to register on the higher end of the spectrum, at about 3% decrease per available seat mile, the low-cost carrier said Monday.
The negative affect on the airline’s bottomline can be most directly attributed to the airline’s shift in marketing following the incident. Out of respect for the victims, Southwest decided to intentionally stop marketing and change its branding temporarily to a more somber tone – a noticeable difference for the typically cheerful presentation of the carrier.
Southwest had previously predicted 5% growth this year, but now it’s seeing closer to 4% growth due to the incident in conjunction with the overall trends of the industry and increased fuel prices.
As for its performance on Wall Street, shares of Southwest are down 22% so far for the year, while the NYSE Arca Airline index is only down about 10%, according to CNBC.
The deadly incident on flight 1380 unfolded when an engine fan blade broke off of the Boeing 737, striking a window, shifting cabin pressure and sucking a passenger partially outside the aircraft. That passenger, 43-year-old Jennifer Riordan, later died from her injuries after being in critical condition at a nearby hospital. Seven other passengers were treated for minor injuries on the site.
The American Express Platinum card has some of the best perks out there: cardholders enjoy the best domestic lounge access (Delta SkyClubs, Centurion Lounges, and Priority Pass), a $200 annual airline fee credit as well as up to $200 in Uber credits, and mid-tier elite status at SPG, Marriott, and Hilton. Combined with the 60,000 point welcome offer -- worth $1,140 based on TPG's valuations -- this card is a no-brainer for frequent travelers. Here are 5 reasons you should consider this card, as well as how you can figure out if the $550 annual fee makes sense for you.
- Earn 60,000 Membership Rewards® points after you use your new Card to make $5,000 in purchases in your first 3 months.
- Enjoy Uber VIP status and free rides in the U.S. up to $15 each month, plus a bonus $20 in December. That can be up to $200 in annual Uber savings.
- 5X Membership Rewards® points on flights booked directly with airlines or with American Express Travel.
- 5X Membership Rewards points on prepaid hotels booked on amextravel.com.
- Enjoy access to the Global Lounge Collection, the only credit card airport lounge access program that includes proprietary lounge locations around the world.
- Receive complimentary benefits with an average total value of $550 with Fine Hotels & Resorts. Learn More.
- $200 Airline Fee Credit, up to $200 per calendar year in baggage fees and more at one qualifying airline.
- Get up to $100 in statement credits annually for purchases at Saks Fifth Avenue on your Platinum Card®. Enrollment required.
- $550 annual fee.
- Terms Apply.
- See Rates & Fees