Southwest Airlines' new assigned seating model — complete with its first-ever extra-legroom seats — is set for takeoff in early 2026.
26.09.2024 - 19:13 / skift.com / Bob Jordan / Elliott Management / Elliott Investment Management / Meghna Maharishi
Southwest Airlines raised its revenue guidance for the third quarter as it plans to announce more changes during its investor day on Thursday.
The carrier expects its revenue per available seat mile to increase between 2% and 3%, up from previous estimates. Southwest attributed part of the increase to a bump in bookings following the CrowdStrike outage and “improving industry demand trends.”
To drive up profits, Southwest has so far said it would introduce premium seating and red-eye flights. The airline plans to start retrofitting its cabins with premium seats next year. The seating changes are expected to rake in an additional $1.5 billion in revenue.
However, it doubled down on its free two-checked bags policy, saying that it generated more market share gains compared to revenue earned from bag fees.
Southwest expects these changes to generate around $4 billion in earnings before interest and taxes by 2027.
On Wednesday, Southwest announced it would cut service in Atlanta, impacting around 300 pilot and flight attendant positions. The carrier said in an internal memo that its current flying levels in Atlanta were not profitable.
Another major change for Southwest is global airline partnerships. Icelandair will be Southwest’s first partner, expecting a 2025 launch at Baltimore-Washington International Airport.
These changes come as Southwest continues to face pressure from activist investor Elliott Investment Management, a hedge fund that is pushing for CEO Bob Jordan to step down. Elliott said on Tuesday that it planned to call for a special meeting as early as next week to force more changes at Southwest.
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Southwest Airlines' new assigned seating model — complete with its first-ever extra-legroom seats — is set for takeoff in early 2026.
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 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.
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.
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If you told me years ago I’d be traveling to Iceland alone to meet a bunch of strangers for a group vacation, I would have called you crazy and laughed out loud.
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.