Southwest to ground 196 flights

Southwest Airlines Co., which had resisted the kinds of capacity cuts being made by other carriers, will eliminate nearly 200 flights early next year as it struggles with high fuel costs and a weakening economy.

Two of the cuts affect Spokane International Airport.

The move raised doubts about the company’s publicly stated goal of growing modestly in 2009 despite the airline industry’s troubles. Now, Southwest will cut 196 flights while adding only six new ones in its schedule that takes effect Jan. 11.

In Spokane, a daytime flight to Seattle and an evening flight to Portland – as well as the return flights – will be eliminated, Southwest spokeswoman Ashley Rogers said. She said she did not have flight numbers because scheduling of the remaining Seattle and Portland flights – three each – might be adjusted as the date for the cutbacks gets closer.

“We just need to be smart about our schedule,” Rogers said, particularly during winter when Southwest keeps more aircraft operational to respond to weather disruptions. Also, there are fewer travelers during the winter.

United Airlines and Horizon Air have also adjusted service to Spokane, and ExpressJet completely shut down its system in response to crushing fuel bills.

Southwest’s reductions represent about 6 percent of its daily schedule of close to 3,400 flights.

Chris Mainz, also with Southwest, said some of the eliminated flights, which span Southwest’s nationwide network, could be restored later in 2009.

Southwest is better insulated than its rivals from high jet fuel prices because it bought options to get most of its fuel at below-market prices. Still, the airline’s fuel bill has been rising, eating into margins at the most consistently profitable U.S. carrier.

Chairman and chief executive Gary Kelly said in June that the Dallas-based low-cost carrier hoped to grow modestly in 2009. But he tempered that outlook by saying the expansion plans could be scrapped if oil prices remain high or the economy weakens further.

At the time, Kelly said Southwest still planned to add 14 new planes next year. Mainz said Tuesday that new planes will be added while older aircraft are retired, keeping the airline’s fleet “relatively flat.” Southwest has about 530 jets, all Boeing 737s.

Southwest is the only major U.S. carrier to earn a profit in the first half of the year – it has not lost money in a quarter since early 1991. Like other carriers, Southwest has been raising fares to offset rising fuel prices, and Kelly has said more increases are likely.

Southwest serves more than 60 U.S. airports and is not leaving any of them under the new schedule.