Skift Take
Michael O'Leary says Southwest's all-inclusive fares are a sign that the airline has lost its 'passion' for low-cost travel.
Has Southwest Airlines lost its way? One of its biggest long-time advocates seems to think so.
Speaking to Skift, Ryanair CEO Michael O’Leary claimed that Southwest’s generous baggage allowance, onboard perks, and rising average fares means it is no longer a true low-cost carrier.
O'Leary has previously credited the U.S. airline with developing the low-fare format replicated by Ryanair and countless others.
“Southwest’s average fare in the last decade has crept up - their average last year was $170 a seat. That's not a particularly cheap airline. Our average airfare in Europe was €44 [$47] a seat. I don't think Southwest is really a low-fares airline anymore,” said the Ryanair chief.
Rising fuel and rising labor costs in the U.S. have disproportionately hit the aviation sector, but Federal Reserve Economic Data suggests the average U.S. airfare across all carriers is actually down compared to 2014.
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