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Yet, only a year after the attacks, Southwest and the industry in general faced still unknown future changes to its operating environment. There was already a new dynamic of security becoming a priority consideration, and new governmental directives and taxes meant to ensure and maintain that security. This new security dynamic had already impinged on Southwest's key operating strategy of customer-friendly service, due to boarding delays and resulting lower on-time arrival performance levels. Consequently, because of decreased demand due to lingering customer fears, depressed macroeconomic conditions, new federal taxes, and the perception of declining service, Southwest began to experience what other carriers already had: reduced revenue, increased costs and declining profitability...
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