Southwest Airlines Co. (NYSE: LUV) may have an ace up its sleeve for future guidance. The airline’s new interior plane design will boost the average number of seats on each plane. If you fly Southwest, chances are you have noticed how full their flights are.
This has garnered little attention and the company has stressed that the interiors of its planes will get a cosmetic and environmental makeover. Some of the features are slightly more bright colors, carpet made from recycled materials, eco-friendly materials that are lighter weight and comfortable low-profile seats.
The hidden gem is that the new plane interior increases the traditional seat count to 143 from a prior 137 and supposedly more room for carry-on luggage.
The cabin preview can be seen here.
Our take: this is seven more seats per plane and that increases the total revenue per plane opportunity even if it could ultimately hurt the company’s load factor reports each month. Bloomberg calls it a $250 million revenue opportunity.
JON C. OGG
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