It has been a gloomy summer for Southwest and American Airlines as the two Texas-based carriers prepare to announce second quarter earnings on Thursday. In Dallas, Southwest faces activist pressure to change its idiosyncratic business model and shake things up at the top. Meanwhile, in nearby Fort Worth, American is unwinding a failed sales strategy championed by former Chief Commercial Officer Vasu Raja, who was fired in May.
While both carriers are in the midst of rough patches, Southwest faces the rougher road as the Federal Aviation Administration this week confirmed it is investigating the airline after multiple close calls and other safety-related incidents this year.
