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To be sure, Southwest in the third quarter earned only about half as much as it did in the same period in 2001. Its top executives aren't certain whether the airline will be able to stay profitable for the final three months of 2002. And Southwest's pay advantage...

Author: /time Magazine | Title: One Airline's Magic | 10/28/2002 | See Source »

Bomaster and workers like him are a big part of the reason that amid record losses by its competitors, Southwest last week reported $75 million in earnings for the third quarter and stands as the only profitable U.S. airline among the top eight. AMR, parent of American Airlines, the world...

Author: /time Magazine | Title: One Airline's Magic | 10/28/2002 | See Source »

How does Southwest do it? The answer starts with lower costs. The Air Transport Association reports that other major airlines (American, United, Delta, Northwest, Continental, U.S. Airways, America West and Alaska) had unit costs--measured in cost per seat for each mile flown--nearly 100% higher than Southwest. A study...

Author: /time Magazine | Title: One Airline's Magic | 10/28/2002 | See Source »

Although starting pay for some positions at Southwest lags behind that of other carriers, Southwest has traditionally made up that deficit with generous profit sharing and stock options--based on shares that have dropped 24% so far this year, after almost doubling in value over the past five years. The...

Author: /time Magazine | Title: One Airline's Magic | 10/28/2002 | See Source »

Flight attendants at Southwest work as many as 150 hours a month, compared with 80 hours at many other airlines, says union president Thom McDaniel. Southwest attendants are required by contract to "make a reasonable effort to tidy the airplane" between flights, a chore that other major airlines pay contractors...

Author: /time Magazine | Title: One Airline's Magic | 10/28/2002 | See Source »

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