Southwest Airlines' new assigned seating model — complete with its first-ever extra-legroom seats — is set for takeoff in early 2026.
26.09.2024 - 14:07 / nytimes.com / Bob Jordan / Elliott Management
Southwest Airlines announced a three-year plan on Thursday to revitalize its operation and customer offerings as it defends against an activist investor calling for new leadership and a strategy overhaul.
The plan expands on a series of changes by Southwest in recent months, including plans to add premium seats, introduce red-eye flights and replace its pick-your-own seating system with assigned seats, starting in 2026.
The airline said on Thursday that it would begin selling vacation packages and was partnering with international airlines, starting with a connection in Baltimore via Icelandair next year. It also plans operational changes, including turning planes around faster and finding ways to save on costs.
“We’re now ushering in a new era at Southwest, moving swiftly and deliberately to transform the company,” Bob Jordan, the airline’s chief executive, said in a statement.
Southwest shares jumped more than 10 percent in early trading on Thursday after the announcement.
The airline is making the moves under rising pressure from an activist hedge fund, Elliott Management, which has amassed a stake of more than 10 percent, worth almost $2 billion. Elliott has said the airline is underperforming and has placed blame on Mr. Jordan, who has worked at the airline for decades.
The hedge fund contends that Southwest can better contain rising costs and improve profit margins. To do that, Elliott says, the airline needs new board members and a new chief executive. The hedge fund plans to call for a shareholder meeting as soon as next week to vote on candidates it has proposed for the airline’s board, mostly former industry executives.
Southwest Airlines' new assigned seating model — complete with its first-ever extra-legroom seats — is set for takeoff in early 2026.
Southwest Airlines raised its revenue guidance for the third quarter as it plans to announce more changes during its investor day on Thursday.
Whatever you thought you knew about Southwest Airlines is about to change.
A popular low-cost air airline is expanding globally. Southwest Airlines recently announced a partnership to offer international flights by partnering with carriers who operate international fights in Southwest markets. “Southwest is formalizing partnerships with international carriers to expand its network and connect Customers with more global destinations to generate additional demand for travel across the Southwest network,” Southwest shared in a news release. The launch of this new international flight program will take place in 2025, with Icelandair as the first partner airline, and will depart from the Baltimore, MD (BWI) airport. There, travelers can fly on Icelandair to Iceland, where they can connect to a variety of European destinations including Paris, Amsterdam, Barcelona, Berlin, Dublin, Oslo, Prague, Rome, and more. Icelandair is a discount carrier that operates international flights, and similar to Southwest, does not have a first or business class section on their aircraft. “The partnership will unlock many exciting travel options for our customers, and our extensive network in Europe will open for Southwest customers,” Icelandair President and CEO Bogi Nils Bogason said in a statement. “As part of our strategic focus on expanding our global partnership network, we seek out airlines known for exceptional service and connectivity.” As an example, a traveler would start their journey on Southwest from Nashville to Baltimore, and then continue on Icelandair from Baltimore to Iceland.
Southwest Airlines is extending its flight schedule into early next summer and introducing new destinations from its Nashville hub. The airline, which usually releases its schedule eight months in advance, has just released its booking calendar through June 4, 2025, announced Wednesday. With the schedule update, the carrier has announced several key updates across its network. For starters, the carrier will expand significantly out of Nashville International Airport (BNA), which has been one of Southwest's fastest-growing hubs and newest crew bases. Starting April 8, 2025, the carrier will begin daily service from Nashville to Albuquerque, Jackson, and Tulsa; as well as up to 6x weekly flights to Providence and up to 5x weekly flights to Albany. In addition, the airline will offer “intra-Tennessee service for the first time” with its brand-new, once-daily service from Nashville to Memphis. “The new flights will boost Southwest’s scheduled presence in Nashville to an all-time high of 174 Sunday departures in April and May 2025,” the airline wrote in a statement. The new route announcement comes as the airline is undergoing notable changes, as Southwest will introduce its first-ever overnight flights to its network next February. With today’s announcement, the airline shared a few more routes that will see redeye service — flights from Honolulu to Las Vegas and Phoenix, Kona to Las Vegas, and Maui to Las Vegas and Phoenix will be offered as red-eyes starting April 8, 2025.
Southwest Airlines is making major changes to its network.
Southwest Airlines said Wednesday that it would reduce service and staff in Atlanta due to a lack of demand.
Southwest Airlines is slashing unprofitable routes as it faces intensifying pressure from an activist investor to boost revenue and cut costs.
When most Americans think of cruises, they probably think of island-hopping in the Caribbean or cruising by glaciers in Alaska from afar. That may be appealing for some people, but for others, the idea of being lazy on a ship of thousands of people for a week doesn’t sound like much of a vacation.
Good morning from Skift. It’s Wednesday, September 25, and here’s what you need to know about the business of travel today.
Elliott Investment Management said Tuesday it would call for a special meeting at Southwest Airlines as soon as next week.
Southwest Airlines has issued a warning to employees without actually warning them. It’s more preparatory that something ominous is likely coming.