Top 10 Southwest Airlines Competitors & Alternatives

Southwest Airlines, aka LUV, is a low-cost airline based in Dallas, Texas. The airline was founded in 1967 by Herb Kelleher and Rollin King as Air Southwest Co. In 1971, the company began operating as an intrastate airline with three planes. Southwest Airlines expanded to become the world’s largest low-cost carrier.

The airline flies to 121 destinations in the US and Central America. In 2019, Southwest Airlines transported 162.7 million passengers and generated $22.42 billion in revenues.

However, the airline only ferried 67.8 million in 2020 and made $9 billion in revenues. [1]

Southwest’s business model utilizes the rolling hub strategy, allowing the company to schedule back-to-back flights to different destinations during peak hours. The airline operates from 107 airports in 40 states and uses only Boeing 737s, minimizing maintenance expenses.

With 718 Boeing 737s and 60,000 employees, Southwest is one of the largest US airlines. After struggling with staffing shortages for months, Southwest plans to hire 8,000 employees in 2022. The airline expects to recover to at least 90% of the 2019 levels in Dec 2020 and generate profits in Q4 2020.

In 2020, Southwest added six new destinations, including Hawaii, Mexico, Colorado, California, and Miami. But Southwest faces stiff competition from Delta, United, American, Spirit, JetBlue, and WestJet. [2]

Here is an in-depth analysis of top Southwest’s competitors and alternatives:

Table of Contents

1. Delta Air Lines

Year founded: 1925
Headquarter: Atlanta, GA

Delta Air Lines is one of the world’s largest airlines and operates in over 50 countries across six continents. The company has 750 aircraft, scheduling more than 5400 flights daily. In 2020, Delta’s annual revenue dropped from $47 billion in 2019 to $17 billion. As a result, the airline made a loss of $12.4 billion.

Like Southwest, Delta Air Lines offers budget-friendly flights. But Delta flies to more destinations than Southwest. Before 2020, Delta was serving about 200 million customers annually. It was making double Southwest’s revenues.

In Dec 2021, Delta canceled 173 flights for Christmas Eve due to staffing shortages. Delta is ahead of Southwest Airlines on revenue per passenger per mile. The company is the founding member of SkyTeam, the largest airline alliance in the world. Delta Air Lines is the top competitor for Southwest. [3]

Starting today, travelers entering the U.S. will no longer be required to submit a negative COVID test.

Learn more about U.S. entry requirements for international travel: https://t.co/nRh9aj14Su pic.twitter.com/gA3GPnb1He
— Delta (@Delta) June 12, 2022

2. American Airlines

Year founded: 1926
Headquarter: Fort Worth, TX

American Airlines operates in the US via its mainline fleet and wholly-owned regional carriers, including Envoy Aviation, PSA Airlines, and Piedmont Airlines. The company is the largest US airline based on the workforce, with over 133,000 employees. In 2020, American Airlines generated $17.33 billion in revenue compared to $45.76 billion in 2019.

American Airlines canceled several flights in Dec 2021 due to technical issues. Both Southwest and American Airlines target the upper-middle class and frequent business travelers. The main competitive advantage for American Airlines is its Advantage customer loyalty program.

This program offers five mileage credits for every dollar spent, appealing for frequent fliers. On revenue per passenger per mile, American Airlines is ahead of Southwest. American Airlines is the founding member of the OneWorld Alliance, increasing its competitive edge over Southwest. [4]

Image credit Miguel Ángel Sanz on Unsplash

3. United Airlines Holdings

Year founded: 1926
Headquarter: Chicago, IL

United Airlines is a premier airline that offers high-quality service to the upper-middle class, VIPs, and frequent business travelers. With a fleet of 812 aircraft and over 93,000 employees, United Airlines is one of the largest airlines in the US. In 2020, United’s revenue declined from $43 billion in 2019 to $15.35 billion and made a loss of $7 billion.

Like Southwest, United Airlines has a strong market presence in the US. But United flies to six continents, including North America, Asia, Europe, Africa, Latin America, and the Middle East. As a member of the Star Alliance, United has access to over 1,000 airports in 154 countries.

United Airlines transported around 57.8 million passengers in 2020 and 162.4 million in 2019. In Dec 2021, United canceled 325 flights scheduled for the Christmas weekend. But the airline offers MileagePlus and United Club, enticing for frequent fliers. United’s programs can poach some customers from Southwest. [5]

🚨 The news you’ve been waiting for! 🥳

The CDC will no longer require a negative COVID test for air travelers entering the U.S. starting this Sunday, June 12. pic.twitter.com/gF3bAErX6o
— United Airlines (@united) June 10, 2022

4. JetBlue Airways

Year founded: 2000
Headquarter: Long Island, NY

JetBlue Airways is the seventh-largest airline in North America, with around 22,000 employees. Like Southwest, JetBlue offers low-cost flights across North America, Central and South America, and the Caribbean. In 2020, JetBlue made over $8 billion in revenues.

JetBlue canceled more than 200 flights during the Christmas holidays due to staffing issues. But the company is using all its resources to cover its staffing needs and minimize cancellations and delays.

In Sep 2021, JetBlue was named the No. 1 domestic airline in the Travel + Leisure World’s Best Awards for the third consecutive year. The awards rates airlines based on in-cabin comfort, in-flight service, customer service, and value. With more than 1000 flights daily, JetBlue is a formidable Southwest competitor. [6]

Press play on those summer plans! 🎉 Starting tomorrow, June 12, 2022, customers entering the U.S. no longer need to provide proof of a negative COVID-19 test. Additional requirements may vary, and you can learn more from the CDC here: https://t.co/rHUoj3gDcc pic.twitter.com/cG3RGUfjxL
— JetBlue (@JetBlue) June 11, 2022

5. Spirit Airlines

Year founded: 1983
Headquarter: Miramar, Florida

Spirit Airlines is an American ultra-low-cost carrier with 500 flights daily. The airline flies to over 60 destinations across the US, the Caribbean, and Latin America. In 2020, Spirit made $1.8 billion in revenues, less than half of $3.8 billion from 2019.

Southwest and Spirit Airlines have been grappling with spikes in bookings. Between Jul and Aug 2021, the airline canceled more than 2,800 flights due to staffing shortages and technical problems.

According to Spirit Airlines, the disruptions affected tens of thousands of customers and cost about $50 million in revenue. As a leading discount carrier in the US, Spirit Airlines is one of the best Southwest competitors. [7]

6. WestJet Airlines

Year founded: 1994
Headquarter: Calgary, Canada

WestJet Airlines is a Canadian airline founded to replicate Southwest’s success. The airline began operations in 1996 as a low-cost alternative to Southwest in Canada. By 2004, WestJet was flying to several US destinations, such as LA, San Francisco, NY, and Orlando. The company has 11,957 employees, with $3.8 billion in annual revenue in 2020.

Between 1996-2004, WestJet attained tremendous success in the domestic market. The airline replicated its domestic success in the US. In 2007, WestJet added Mexico and the Caribbean to its network.

By 2012, WestJet had around 100 Boeing 737 Next-Gen aircraft flying to more than 100 destinations. As one of the fastest-growing low-cost airlines in North America, WestJet is a worthy Southwest competitor. [8]

Our first Sustainable Aviation Fuel (SAF) flight, took off yesterday from LAX to YYC. ✈️

We're proud to partner with @IATA and @Boeing in joining our industry peers as we strive to achieve net zero carbon emissions by 2050. https://t.co/crGIRc8eWn
— WestJet (@WestJet) June 7, 2022

7. Alaska Airlines

Year founded: 1932
Headquarter: SeaTac, Washington

Alaska Airlines is the fifth largest airline in the US by fleet size and passengers. The airline was founded to tap into the Alaskan market, flying to about 20 destinations throughout the state. In 2020, the airline generated $3.75 billion in revenues, a 59% decrease from $8.78 billion in 2019.

The company’s revenue was $5.93 billion in 2016, $7.89 billion in 2017, and $8.26 billion in 2018. The main competitive advantage for Alaska Airlines over Southwest is its customer service. The airline has won several awards for its exemplary service, enticing North American customers.

In Nov 2021, Alaska Airlines added Belize City to its Central American destinations. Belize is the fourth country served by the airline’s West Coast hubs. The airline canceled fewer flights in Dec 2021 than Southwest. Alaska Airlines is the best Southwest alternatives for upper-middle-class travelers. [9]

8. Air Canada

Year founded: 1936
Headquarter: Montreal, Quebec, Canada

Air Canada is the leading carrier in Canada with a fleet of 300 aircraft. The airline transported 13.8 million passengers in 2020 versus 51.5 million in 2019. In 2020, Air Canada’s annual revenue was $5.8 billion, a 70% decline from 2019.

Air Canada flies to 192 destinations with 15,00 daily departures. In Nov 2021, the US Department of Transportation fined Air Canada $4.5 million after the airline failed to refund passengers who missed their flights due to cancellations or delays.

The settlement is the highest amount imposed on a single airline. Affected passengers will share $2 million, and the remaining $2.5 million goes to the US Treasury. This fine undermines Air Canada’s competitive edge over Southwest. [10]

9. Frontier Group

Year founded: 1994
Headquarter: Denver, Colorado

Frontier Airline is an ultra-low-cost carrier with a fleet of 103 aircraft. The airline transported 13 million passengers in 2020, compared to 22 million in 2019. In 2021, Frontier Group went public in a $266 million IPO. The company offered 30 million shares at $19.00 per share. [11]

Both Southwest and Frontier Group are discounters focused on leisure travelers. This target market made up the bulk of demand in 2021.

Frontier Group is the latest airline after Southwest to warn about weaker bookings due to tactical issues and staffing shortages. However, downturns tend to favor new airlines. Frontier Group can offer cheaper flights than Southwest to fuel its expansion.

10. Sun Country Airlines

Year founded: 1982
Headquarter: Minneapolis, Minnesota, United States

Sun Country Airlines is an ultra-low-cost passenger airline that flies to 59 destinations. It is the eleventh largest US airline by passengers carried, with 1.7 million in 2020 and 3.13 million in 2019. In 2021, Sun Country Airlines tapped the public markets for expansion capital.

The company priced its IPO at $24 a share and raised $218 million by selling about 9.1 million shares. [12]

Both Sun Country and Southwest are discounters for leisure travelers. With 1,800 employees, Sun Country is about 30 times smaller than Southwest. But investors flock to new airlines as potential investments rather than established competitors.

So, Sun Country Airlines is better positioned to exploit the boom after the recent downturn. As a new airline, Sun Country can offer cheaper flights and poach some customers from Southwest.