Southwest Airlines will announce major changes to how they’ll operate this coming Thursday. It’s Investor Day, and the change to lay out plans that have been spurred by activist investor Elliott Management. We know some of what they have planned from previous earnings calls, but they’ve told s that more changes and details will come out in their planned investor presentation.
From comments to employees by Southwest’s Chief Operating Officer, we know that the airline will be making changes to its route map and that it will be done in a way that significantly impacts some groups of employees. That makes it sound like they’ll be closing crew bases. Southwest also wants more connecting passengers.
We know that Southwest is going to start offering assigned seating next year, and introducing extra legroom seating (about a third of its seats) that they will charge a premium for. They’re also looking to cut spending, and improve aircraft utilization – flying more with the same number of airplanes.
So along these lines, here’s a popular sense of what will be announced at Thursday’s Investor Day:
SWA will shrink to profitability. No stations closed, but “focus cities” shrink. Current “bases” realigned with ATL in the crosshairs.
Intrastate CA flying noticeably reduced. Routes with no connectivity go first.
Capital expenditures trimmed as far as order book from Boeing. Deferring airplanes for a later date.
Staffing levels reduced at HQ.
Booking window for assigned seating opens in or just after April.
Taking five minutes out of the turns. The assigned seating “studies” have shown it’s possible.
Hawaii ops won’t look like this a year from now:
Southwest is bleeding on its flying between islands in Hawaii. If they shrink there, it will be because of the Department of Transportation’s insistence that Alaska Airlines continue all of Hawaiian’s flying between the islands as a condition of their merger. Since Alaska can’t reduce capacity, Southwest just won’t be in a position to continue all of theirs.
Southwest Airlines in Honolulu
Pushing out Boeing orders makes sense. They’ve been doing a lot of unprofitable flying, they can grow with redeyes and flying existing planes more. They do need to replace their 737-700s, and they have MAX 7s on order, but those aren’t certified yet. And they plan to reconfigure seating on those which means they expect to keep flying them awhile longer.
Cutting Atlanta even more may make sense. Southwest simply never established themselves in the Atlanta market after buying AirTran but it points out just how futile that endeavor was. They gained gates and slots at congested airports but, aside from Washington’s National airport, mostly squandered that opportunity.
Southwest Airlines often ‘turns’ planes faster than other carriers. They’re aided today by a boarding process that gets passengers to line up in advance and board quickly as they scour for seats. Assigned seats may actually slow down the boarding process so it’ll be interesting to see whether they can really turn planes around even faster at the same time they change their boarding process and remove some of the passenger incentive for speed.
SWA announced a cut to the ATL base. In April 2025 the base will be reduced by 200 FA. Those people will be forced to based.
Follow up to Trippe observation above. Exactly what happened at American. Things employee relation wise were “rocky” but when the minority USAir gang got integrated and injected their sorry culture into what was once great airline it sent AA to the bottom also.
Glad they are finally assigning seats. It’s terrible and your husband is in a very backseat and you’re in the front seat.
Why can’t they leave a good thing thats functional now alone!
If this results in a direct flight from Dallas to.Cleveland then count me in!!
It’s my understanding Southwest had most of their fleet under warranty so for years they got things fixed for free. They also had purchased a huge fuel contract so fuel was super cheap. If both those are expired then costs have gone up for southwest so playing musical chairs with their sausage factory seating won’t save a bit. Good fun though.
I fly SW for 2 reasons.
1. Open seating
2. Bags Fly free
I’m not in favor of the assigned seats so I guess when they start charging for the bags as well then it won’t really matter what airline is used. Those are the 2 things that made SW stand out & above the rest.
I have been flying Southwest since 1977. I have been through all the boarding processes. From the “first come, first serve” to the formal groups numerical order. In the early days, planes were turned around in 10-15 minutes. Now aircraft seem to be on the ground up to 30 minutes.
I love flying Southwest. The location is great, open seating, and bags fly free. However, if they are going to start charging for assigned seating, I wish they would make the first six rows bigger seats that way it would make it easier for some people. I don’t mind paying for comfort.
I don’t believe they even conducted a “survey” of any significant sample size. Further, if institutional investors opposed Elliot my gues is they could defeat them. But that would take some organization and commitment. Companion pass, A-list benefits, free checked bags are all perks that draw me to SWA along with fairly comfortable seating. I imagine, as they introduce premium seating, the regular coach seating will get worse. If any of the above are changed, I’ll shop around. AA, Alaska and Delta all have a free carry-on with economy and their seats aren’t terrible. I hope Elliot loses their shirt on this boondoggle.
I don’t like assigning seats. I like that you don’t have to pay for two bags. I like sw but if they do that I guess I will fly with another.
I already left Southwest and have been flying American Airlines and it’s much better. Cabins are cleaner, seats are more comfortable, the service was more professional, and on the Airbus airplanes or Boeing widebody there’s lots of room and better technology. Carryons are free and if you can’t carry it on due to no space left they check it complimentary. I don’t mind checking my bags and assigning a seat I paid for when the service is way better. The fares have been cheaper as well I’ve noticed. I like the change and I like American Airlines.
Time to Watch The Wheel Chair brigade…. to cease.
I’m in Las Vegas Nevada and leaving the state every other person needs assistance, however if you pay close attention, most can walk fine.. they are either extremely OVERWEIGHT. Or The Mothers that fly with 4 kids ? It’ll be a nice change, to finally upcharge for the special attention they need., Time to watch them walk to the BACK OF THE AIRPLANE, lol
I love open seating and free bags these other airlines bag rules make me feel like I’m buying 2 airfares…
As long as they don’t get rid of the two bags fly free, I’d start shopping every other airline then, they’d be no different.