Southwest CEO Says Price War Is Coming, Travelers Should Be the Winners

This post may contain affiliate links; please read our advertiser disclosure for more information.

airlines price war

Southwest CEO Says Price War Is Coming

Southwest Airlines CEO Gary Kelly predicts an intense competition for passengers as the air travel industry starts coming back to life. At its low point back in April, travel was down an incredible 96%, but in recent weeks we have seen a 400% increase. The number of passengers passing through TSA checkpoints is still about 90% than last year, but there are encouraging signs.

So Kelly expects airlines to get into a price war in order to get business from those passengers who are willing to fly right now. Airlines are hurting for cash, and government bailout money will run out soon. He said he expects “a brutal low-fare environment” among carriers once coronavirus fears subside, Bloomberg reports.

With a potential price war putting more pressure on already struggling airlines, Southwest is preparing contingency plans the CEO said. “We’re well prepared for this catastrophe and we must strive to stay that way,” Kelly said.

Southwest is better positioned for a price war since they already have a low-cost philosophy. They also have a generous refund policy which gives passengers a piece of mind.

Airlines competing for passengers should mean lower prices. So passengers could see more travel deals once they are able to fly again. We have already seen such offers in the last few weeks, and with more generous than usual cancel policies, you can start dreaming of your next vacations already.

Based in NYC. Points/miles enthusiast for years and actively writing about it for the last two years at Danny the Deal Guru. I'm always looking out for deals. Making a few bucks is always nice, but the traveling is by far the best part of this business.

More Like This


Responses are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.


  1. Whenever I check prices, SWA is more expensive than Legacy carriers from DTW (Detroit) when I can be flexible with dates. It’s Benn many years since I’ve found low prices with SWA.


Please enter your comment!
Please enter your name here


  • MtM recommended tool to track & organize credit cards
  • Best card offers personalized for you
  • Track bonus deadlines, fee dates & 5/24 status
  • Full Travel Freely overview

Free Sign-Up

moomoo - 2 Free Stocks!

Brokerage app moomoo is offering 2 Free Stocks! Just open an account and fund with $500 to get your stocks! Super easy.
Grab your 2 free stocks now!

Subscribe To Our Newsletter

Join thousands of MtM readers who are subscribed to receive a once daily email with all of our posts. Never miss out!

You have Successfully Subscribed!