Southwest Effect works internationally too

Fares fall when Southwest – or Spirit – opens a route
Airline industry analysts in the US use the term Southwest Effect to describe how fares decrease after Southwest Airlines or another low-cost carrier launches a domestic route in competition with legacy airlines.
Now Southwest has started international destinations too, and the Southwest Effect also seems to be working on these flights.
Fares for flights to Mexico, Central America and the Caribbean fell by up to 25% after Southwest launched routes there, a study by website Farecompare finds. The same happens when ultra-low-cost carrier Spirit Airlines enters the markets.
“It appears that Southwest doesn’t have to be in the market in order for the so-called Southwest Effect to occur,” the study concludes.
Chicago Tribune


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