Southwest CEO Defends Changes: ‘We’re Committed to Following the Customer’ 

Key Points

• Southwest Airlines has introduced assigned seating and baggage fees, departing from its long-standing business model.
• CEO Bob Jordan emphasized these changes are driven by evolving customer preferences and competitive pressures.
• The airline projects increased profits for 2026 and is considering further innovations like lounges and international flights.

Summary

Southwest Airlines has made significant changes to its traditional business model by introducing assigned seating and baggage fees in response to shifting customer preferences and competitive pressures, particularly from activist investors. CEO Bob Jordan stressed that these moves are about adapting to what customers want today to stay competitive, not about imitating other carriers. The company anticipates a rise in profits for 2026, with further innovations such as airport lounges and international expansion under consideration.