Striving to Perform All Value Chain Activities Cost-Effectively
Southwest made a point of scrutinizing every aspect of its operations to find ways to trim costs. The company's strategic actions to reduce or at least contain costs were extensive ongoing:
1.Sharply rising prices for jet fuel over the past 12 years that caused fuel expenses to rise from 16.5 percent of total operating expenses in 2003 to between 28 and 38 percent of total operating expenses since 2006 had prompted a number of projects to increase fuel efficiency, including:
1.1 Installing "blended winglets" on all of South west's planes beginning in 2007 and then, in 2014, starting to upgrade its aircraft fleet with newly designed split-scimitar winglets. These winglets reduced lift drag, allowed aircraft to climb more steeply and reach higher flight levels quicker, improved cruising performance, helped extend engine life and reduce maintenance costs, and reduced fuel burn.