Southwest to launch first international cargo services in May

Southwest Airlines plans to start rolling out international cargo shipments in May, with Mexico City, Cancun, Cabo San Lucas/Los Cabos and Puerto Vallarta at the top of the list, the carrier announced.

The new service, subject to government approvals and the successful deployment of its new Southwest Cargo Suite (SCS) point-of-sale and back-office system, would expand to more destinations in 2018, Southwest said. SCS is expected to be in place by April 1 and will enable advanced cargo bookings and electronic air waybills.

Southwest saw cargo revenue rise 1.2% year-over-year (YOY) in 2017 to $173 million, “primarily due to increased demand,” the carrier said in its most recent 10-K filing with the U.S. Securities and Exchange Commission. Its 2018 first-quarter outlook was for a YOY rise compared to 2017's first three months. “Sluggish demand” contributed to a 4.5% drop in full-year 2016 revenue to $172 million from $178 million in 2017.

North America, like much of the rest of the globe, enjoyed a strong air freight year in 2017. IATA figures show North American FTKs rose 7.9% YOY in 2017, while global FTK growth was 9%—the strongest YOY surge since 2010.

(Sean Broderick - ATWOnline News)