Did an Aggressive United Push Southwest Out of Newark Hub?
Skift Take
When United Airlines President Scott Kirby joined in 2016, he promised he'd boost share at Newark. Now Southwest is pulling out of Newark, citing a tough environment. Think this is a coincidence?
Southwest Airlines is retreating from Newark International Airport, saying its flights "underperform financially," and arguing the aircraft it used there can be more profitably deployed to Hawaii and other winning markets.
CEO Gary Kelly downplayed the significance of the move Thursday on the airline's second quarter earnings call, but it's still unusual. Yes, Southwest closed some smaller stations it inherited from its 2011 acquisition of Air Tran Airways, but over its five-decade history, it has rarely left big markets like Newark, which serves New York City.
In early November, Southwest will consolidate its New York City operations at LaGuardia Airport. Southwest now has 37 departures from LaGuardia, a tiny number for what has become the nation's largest domestic airline.
"This is a tactical decision forced by the MAX groundings and the painful cut of 8 percent of our capacity," CEO Gary Kelly said on the airline's earn