Latest news with #transpacific
Skift
4 days ago
- Business
- Skift
Southwest Goes Global with First Transpacific Partner
While still modest in scope, this latest step hints at a broader ambition for Southwest to build a powerful patchwork of global connectivity. It's a strategic shift that signals Southwest Airlines' growing global ambitions: On Monday, the low-cost carrier said it is preparing to launch its first transpacific airline partnership. Under the agreement, travelers will be able to book single-ticket itineraries combining China Airlines' transpacific services with Southwest's U.S. network, connecting via Los Angeles, San Francisco, Ontario, and Seattle. More than 30 cities across the United States are due to be included in the arrangement. Southwest says published connections should go on sale later in 2025, with service scheduled to begin in early 2026. Final discussions between the two airlines are continuing to fine-tune the terms and scope of the partnership. The milestone was announced at the IATA AGM taking place in Delhi this week. Southwest is making its debut at the event after it joined the airline trade body earlier this year. Andrew Watterson, Southwest's chief operating officer, hinted that the China Airlines deal may be just the beginning: 'We've found great interest globally in potential partnerships with Southwest and continue discussions here in New Delhi with several like-minded carriers.' Interline agreements offer Southwest a low-risk way to expand internationally without surrendering its independence. Andrew Watterson pictured with Kevin Chen, President at China Airlines. credit: southwest airlines China Airlines already has well-established U.S. links with Delta through its membership of the SkyTeam alliance. But as the largest U.S. domestic carrier, Southwest can offer China Airlines far greater onward connectivity — especially from Ontario and San Francisco, where Delta's presence is more limited. While notable, Monday's announcement was light on detail in some areas. For example, it remains to be seen what onboard options may be available for China Airlines' premium passengers. Ongoing discussions between the two companies are likely to explore these finer details. 'For Southwest, this new partnership marks another step toward chasing revenue sources it long ignored,' said Jay Shabat, senior analyst at Airline Weekly. 'Expect the company to announce additional partnerships with international airlines, but will it ever decide to fly overseas itself?' All Change at Southwest The agreement with China Airlines marks only the second such deal for Southwest. Last September, the U.S. carrier announced Icelandair as its first international airline partner. Transit passengers at Baltimore-Washington, Denver, and Nashville airports were the first to benefit. From July 14, connecting options will be added at Orlando, Pittsburgh, and Raleigh-Durham. It marks the latest phase in a transformative year for Southwest. The company is upending its decades-old business model following a bitter battle with activist investor Elliott Investment Management. After building a nearly $2 billion economic stake in Southwest, the hedge fund pushed for a senior leadership overhaul. Ultimately, the two companies reached a settlement to give Elliott five board seats — just short of control — while Bob Jordan remained as CEO. Distinctive features such as its open seating system, 'bags go free' policy, and boarding method are also changing. Other moves include the addition of extra legroom seats and the introduction of red-eye flying on select routes are signs that even Southwest's most iconic elements are not off-limits as it overhauls its business model. What am I looking at? The performance of airline sector stocks within the ST200. The index includes companies publicly traded across global markets including network carriers, low-cost carriers, and other related companies. The Skift Travel 200 (ST200) combines the financial performance of nearly 200 travel companies worth more than a trillion dollars into a single number. See more airlines sector financial performance. Read the full methodology behind the Skift Travel 200.
South China Morning Post
13-05-2025
- Business
- South China Morning Post
Shipping demand set to explode as firms rush to exploit US-China tariff pause
Transpacific shipping routes are set to witness a dramatic uptick in container traffic over the coming weeks, as businesses rush to front-load shipments to take advantage of a temporary reduction in US and Chinese tariffs, analysts said. The 90-day truce announced by China and the United States on Monday is expected to trigger an immediate surge in demand for container shipping, with some analysts warning the increase in shipments could be so large that it creates bottlenecks at American ports. The de-escalation of the trade war came earlier than many expected, container shipping intelligence firm Linerlytica said in a note on Monday, which is 'setting the stage for a surge in transpacific cargo volumes in the next three months'. The wave of demand will be even more intense due to the fact that many companies already have significant backlogs of goods ready to ship, with US importers adopting a 'wait-and-see' strategy in recent weeks as they watched for any potential move to roll back tariffs, said Lars Jensen, the founder of Vespucci Maritime, in an online post. Following trade talks in Switzerland over the weekend, the US has agreed to reduce its recently imposed tariffs on Chinese imports from 145 per cent to 30 per cent, with 91 percentage points of those tariffs scrapped and 24 percentage points suspended for a period of 90 days. China, in turn, has agreed to cut its retaliatory tariffs on US imports from 125 per cent to 10 per cent. The deal will come into effect on Wednesday.
