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.
As long as they don’t mess with the CP I’m fine with their changes. The $$$ that were paid for EB will now go towards the cost for a better seat.
Every airline that was killed off was done in by Bean Counters rather than by airline guys. When the BC’s take over bad things always happen. They are disguised as improvements but they never seem to work out that way. Then after they don’t work the Bean Counters sell off the remnants and move on to another victim. I sincerely hope that this does not happen with SWA as the were always the airline the really cared about their customers. Some of the changes would be benifcial but some are just failed airline guys rhetoric. As Elliot plans to load up the SWA board with “airline people” they must be the same people who had a hand in destroying some of the biggest airlines of the past. Bean Counters cannot run airlines, a mix of current Airline guys would do a far better job of that.that far better.
Assigned seating along with many groups boarding will slow down boarding. Further, all of the wheelchair boarders will be spread throughout the aircraft, requiring them to slowly get up and out to allow other passengers to take their seats. Southwest will become a footnote to the big three.
I have been a loyal Southwest Airlines flyer for over 20 years. I choose to fly this airline because of the no assigned seating policy and been able to maintain my A-list preferred status- these changes will make the airline e just like the rest and I sadly will now search for the best price and route vs staying loyal to SWA – I don’t need more legroom, I don’t need fancy snacks and I don’t need to feel entitled or better than others by paying more for my seat and location.
I have flown SWA for almost 50 years, and have always enjoyed the simplicity and conveniences of their system. To get more than what came automatically, it simple cost a few dollars more, again it was simple and straightforward. The only thing I think they have done wrong was to have MANY flights daily out of too many airports. There is no reason to have six flight going out of an airport in a six hour span. These new changes are going to be a slap in the face of MANY thousands of longtime completely satisfied and faithful SWA customers.
WN had lost on the opportunity to get the premium leisure traffic of the past 3 years.
Southwest can keep loyal to its brand identity yet still make a more premium experience. Just assign the seats in the extra legroom section and exit row. This will still get rid of the preboarders as they won’t be allowed in the good seats without paying.
Getting rid of unprofitable flying does help. Also they failed to change once the business commuting patterns changed especially here in CA. I’ve been on plenty of WN flights this year that are over half empty. But all my Alaska flights are full.
People want decent food in the sky too. Cheese it’s are needing an improvement. Especially when you have Hawaii ops. I refuse to fly WN to Hawaii because….food and power.
“Assigned seats may actually slow down the boarding process”
Which can be easily offset by restricting carry-ons to a single personal item.
I wonder if WN will start serving meals in its premium cabins. Cold things for breakfast like cereal and milk and muffins , sandwiches and salads for lunch and dinner, etc. If you are going to be premium do it the correct way.
I have been a Rapid Rewards Member and A-List preferred for years mostly flying business select. If these changes eliminate companion pass and loyalty bonuses I will be glad to shop other airlines. I like the simplicity of no assigned seats except for the passengers that can’t figure out the system as well as gain access by using early boarding for fantom disabilities. SWA will lose me and I will be glad to shop for pricing over loyalty. Herb would be disappointed in the lack of leadership with the current cast of clowns.
Southwest Airlines is and has been my all-time favorite, I plan to be a Southwest passenger for all of my life. However I am not happy about the seating arrangement going forward. Just leave well enough alon
Too bad about Hawaii, but no way I am taking a 5hr flight in anything smaller than E+/C+ seats.
Hopefully they won’t gut intra-CA routes, as frequency is still well below the pre-pandemic levels and nowhere nears the levels we used to see on the hourly SFO-LAX shuttles that UA & US (and before them AirCal and PSA) ran.
Herb said many things, SW was “studied” by Smart People trying to figure out why it worked so well. “Think small and act small, and we’ll get bigger. Think big and act big, and we’ll get smaller.”
SWA retiree here. I had the privilege of working at Southwest when Herb and Colleen were there. I was part of the ticketless rollout team. Back when the company was innovative and not afraid to color outside the lines. Those were the good old days. I am a little skeptical of putting former anything from other airlines on the Board.
The airline industry is such a close knit group. From the FAA to the manufacturer to the airline, there is a lot of if I scratch you back type shenanigans that goes on.
If SWA can get me where I’m going safely without breaking the bank, then I continue flying with them.
Time will tell.
I have to have the bulkhead row due to a disability. So, now I’m going to have to pay extra to get the seat I need, not want! I always did pre-boarding to get the seat I need. I’ve never experienced the problems others have said have happen. I’ve been flying southwest airlines for 40-50 yrs. I called the corporate office and asked about those people that have disabilities… I was told I would get the seat they assign me. And if I WANT a different seat, I would have to pay for it. I told her I would NEED, not want! Asked her if they’re aware of the Federal ADA Law?? She hung up on me!
They said they did a survey and found fluers wanted assigned seating!? When and where was this so-called survey done? We flew 9 flights, a group of us in 1 month. Not one person in the group got a survey… all of us are rapid rewards members. I’ve asked SW many times, when and where we’re the surveys taken and to make it public… they refuse too.
They refuse to answer my questions!!
I have alot of miles to use… I think I may use them soon and not fly anymore with them
Mark O; Bob Crandall was the last airline guy American airlines had. Our downfall began with his successor. I don’t know if there are any airline guys left.
Assigned seating cant come fast enough. Time to shutdown these scumbags posing as handicapped to cut to the front of the line.
Return to EWR. Make it happen.
Any airline that has a department of a half dozen people at HDQ who does nothing but send greeting cards to employees probably has room to trim some staff.
It would be cool if Southwest merged its network with jetblues service and prominence in the northeast and Europe. That would make it a formidable competitor to the big 3
I have been a loyal Southwest customer for over 35+ years – I hear the “Death Knell” for Southwest loud and clear. Another great business killed off by corporate greed and stupidity.
KISS
Keep it simple stupid.
I have flown SW for 40 years based on ease and simplicity. You will now be no different from any other airlines. You could make several changes to grow revenue and you picked the ones that will ultimately push your loyal base to shop other airlines. Sad part it is not shocking. It should be fun to watch prices go up, and stock to go down. Best of luck
Soon, expect a huge sale on used Southwest owned wheelchairs.
Cutting 5 minutes off turns is yet another bean counters pipedream. They rely on AI modeling ” that has no correlation to the time reality of boarding and deplaning. As noted previously, seat selection will only slow down the process. Especially with their archaic passenger processing systems, boarding full flights on very tight ground time will lead to an unending train wreck. As cramped as planes are today the carriers stuffing more and more seats in them, the delaying process alone will throw a monkey wrench into this.
I am a business traveler commuting between northern and southern California every weekend. I have had more than 25 flights between Burbank and San Jose this year and I have noted a continued decline of on-time and also as others have noted lighter loads. Most flights the past six months are 1/2-1/3 empty. Fewer discount fares too. When most of the flights I take are one hour late, the benefit of flying gets lost and I find myself driving it more often for these short trips. It would certainly improve reliability if the planes servicing intra California routes stayed in California rather than flying across the country where they are more likely to suffer weather related delays. This Friday I am flying Spirit Burbank to San Jose for 1/3 of the price of Southwest. I figure what is the point of staying with Southwest since they fly just as late as Spirit.
The Airtran purchase was a mistake. Both for Southwest and also for travelers
Ultimately, an airline has to be a business. And it has to respect the shareholders. In theory, this is what Elliott management is attempting to accomplish. But… Giving Elliot’s track record, it’s worth saying right now and on the record, if this does not work out big for the economic betterment of Southwest, then Elliot’s feet need to be put to the fire and we need to remind them that they are sub-competent. That’s why this record is being made now.
We’ll join the other 40+ years’ loyalty group who absolutely love SWA as our ” go to” airline. and
definitely DO NOT want assigned seats‼️‼️ And we enjoy getting our annual “A” List ranking from traveling on our favorite airline that might also be eliminated. There are other ways to stay competitive in the airline industry WITHOUT DELETING THE VERY THING THAT MAKES SWA UNIQUE FROM THE OTHERS—-THINK ABOUT IT‼️‼️‼️‼️
We have been flying SW since 2006 when the friendly skies became unfriendly. I agree with many that people who use a disability and may not be that bad be required to have a doctor’s note. Over the years we have paid a little extra for early boarding. Now, we are priced out of that. Yes, the bean counters may indeed wreck this wonderful airline. I hope we do not have to search for another. My wife and I always thank the members of our flight crew after we land. We appreciate their efforts. We have never been surveys regarding seating. Mgmt.Listen to the customers. They know what they like and do not like.
as someone who is on a Southwest flight 2 to 3 times a month, This is indeed distressing. I buy my extra seat with points and generally pre-board. I don’t take up aisle seats or bulkheads I just create enough room for myself so that I don’t crowd anyone. now because these greedy dirtbags want to extract more money for themselves there’s a great number of folks who made Southwest what it is for whom this is a slap in the face.
I see the comments from the wannabe alphas talking about all the pre-boarders… If you don’t like how it works at Southwest sport, fly somebody else. but you won’t will you? You know we have a good on that airline, and you know the seating model works. what we’re seeing here is the what I call premiumization of our economy. catering to the wealthy to the exclusion of absolutely everyone else.
This is indeed the death knell for Southwest as it is, hopefully somebody with some sense instead of just greed can step in and keep it from killing the airline entirely.
… if this does not work out big for the economic betterment of Southwest, then Elliot’s feet need to be put to the fire and we need to remind them that they are sub-competent.” Unfortunately, by that time SW will have been destroyed.
@ Mike. I agree 100%. The SWA “culture” (the fun airline) was not something that AirTran/ValuJet subscribed too . . . and it was apparent both at the airport and inflight. There was a big difference in the culture of the Morris Air employees (they easily adapted to the SWA culture) and those of the Atlanta and Orlando based AirTran/ValuJet.
As a loyal SWA customer since 1986, I have experienced customer service, respect and comradery with SW employees at all operations and support levels. I would have appreciated an experiment with assigned seat prior to a hard decision. At my age changes like those planned currently, bring sadness to my heart and put a knife of doubt into my spirit of joy as a stockholder and customer, that managers truly know what they are doing or the consequences of their decisions. I’m hoping for the best, but planning for what may be detrimental.
@Jetdoc … Carty was an airline guy, Arpey came up through the ranks at AA … they just weren’t Crandall … AA went into a decline after RLC left which turned into a cliff jump after America West management took over.
I’m sure their ‘study’ showing 5 minutes could be shaved off a turn was done with fit 20-somethings who knew what to do and ran it over and over until they got the result they wanted instead of your typical older, overweight passenger who is basically clueless (just like the FAA study that shows a plane can be evacuated in some ridiculously short amount of time … put me in that study in a window seat and watch the time skyrocket).
Finally, I guess I need to hurry and take a SW flight before they go to assigned seating so I can claim I need a wheelchair, maybe Jetway Jesus will cure my bum knee.
The influence of Elliott, in this case, isn’t just a reactionary measure; they’ve made it clear that they don’t believe the current Southwest Airlines (WN) management is fit to determine the airline’s future. Elliott’s pressure on leadership has prompted them to call a special shareholder meeting as soon as next week. However, while Elliott may bring fresh perspectives, the real issue lies in Southwest’s inability to innovate over the past few decades.
Southwest leadership has spent far too long riding on the coattails of Herb Kelleher’s legacy, much like Pan Am executives once clung to the vision of Juan Trippe. This refusal to think outside the box, to create a new vision for the airline in changing times, has led us to where we are now. Gary Kelly, Bob Jordan, Jim Parker, and even leaders from as far back as Lamar Muse and Howard Putnam are no Herb Kelleher—and that’s the problem. Southwest isn’t adapting; it’s stagnating.
We’ve seen this before. Pan Am was an industry giant, yet its leadership failed to evolve, and Southwest is repeating that mistake. Instead of embracing new voices, like David Neeleman from JetBlue, Southwest has opted for the comfort of what’s familiar, rather than what’s innovative. If leadership had truly understood the importance of adapting, we could have been a more forward-thinking airline, and Elliott wouldn’t be knocking at our door now.
What frustrates me most as a line employee is the culture of “yes men” that seems to permeate Southwest’s leadership. There’s almost a cult-like reverence for the CEO, where dissenting opinions are not welcome. This isn’t how you run a business. A charismatic leader like Herb is one thing, but when you replace him with a series of leaders who seem to care more about maintaining the status quo than pushing the airline forward, you end up in the situation we’re in today.
Elliott has certainly done its homework. They’re not a global hedge fund without employing smart people who know how to analyze data and spot weaknesses. But here’s where Southwest has gone wrong: our leadership has become so data-driven that they’ve manipulated the numbers to justify mediocrity. Data is important, yes, but it’s only one part of the equation. Culture is just as important, and it should never be sidelined or skewed to fit a narrative. Data should be used honestly and effectively, as a tool—not as the ultimate decision-maker.
Southwest leadership has failed to understand this balance. If they had, Elliott wouldn’t be challenging us now, because we’d be doing better. The airline industry is tough, and we need leaders who not only understand that struggle but also recognize the value of innovation and the significance of the company’s culture. This is a wake-up call for Southwest.
IF SOUTHWEST CUTS ATL,
DELTA WILL RAISE FARES!!
BEWARE!!
Beware of Elliot Management. These clowns pulled the same shenanigans with AT&T. Raised all sorts of hell about the incompetent Management and pathetic stock price while swinging their 4 Billion $$ hammer. Got their money back and left the idiot Management in place that triggered EM interest in the first place. They will not make SW better. They’ll get the stock price up a few bucks and cash out. Activists investors. Don’t believe them. Their only interest is EM.
“I called the corporate office and asked about those people that have disabilities… I was told I would get the seat they assign me. And if I WANT a different seat, I would have to pay for it.” Why do I have trouble believing this occurred? Hmmm, let me try calling SW with the same question. I’ll let you know if I get through to anyone authorized to speak on this.
“If you don’t like how it works at Southwest sport, fly somebody else.” And we did fly others, and, wait for it, SW decided not enough of us were flying them, and they are changing.
Here’s the ultimate solution to seating!!!
Assign seats to ANYONE needing a wheelchair; they will be “privileged” to board first, and will be unable to carry more than a single small bag. All od these passengers will be restricted to their assigned seats located in the last 6 to 9 rows of the aircraft. Their assigned seats will be at a “discount” of $10. to reflect their “privilege.”
For all other passengers, there will be open seating which has worked for both WN and passengers for almost 50 years.
Upon disembarking, the “privileged” flyers will be required to remain seated until their rows are called; this is for their SAFETY.
Disabled passengers will not need a doctor’s note, nor pay for bulkhead seats, nor request them in advance. See the CFR that implements the Air Carrier Access Act.
Been a very loyal SW flyer for 30 yrs. I have not flown on a SW flight that has not been >90% full si ce COVID. Regular flight are all out of PHX regular routes to San Jose Ca, Nashville and Denver. The commuter flights board in 25 or longer depending on number of WCs. They are going to blow their brand imho
@Mark O – you nailed it perfectly!
I have flown Southwest for 25 years. I love the No assigned seat! Very Disappointed to see them change this!
Obviously there needs to be a major over-haul with situations like this because airline companies can’t continue with pulling this kinda dumb crap any more
jns,
“Further, all of the wheelchair boarders will be spread throughout the aircraft, requiring them to slowly get up and out to allow other passengers to take their seats. ”
There is a solution to this – have the wheelchair boarders get on first, and make damn clear when they request a wheelchair boarding they’re taking a wheelchair OFF the 737 also one way or another.
I am a loyal SWA psgr. After 35 years of flying and taking whatever seat was available, I now need a wheelchair. I can walk to the bathroom or get a drink of water from the gate area but cannot walk down the jetway, from check-in to gate area, to change planes if the gates are far or diown to baggage due to the enormous size of our airports. Think about it. You may be within the same circumstances some day. You never know someone’s situation !
Very glad I’ve just used most of my flight credit for a trip next month. With all the changes there’s no doubt it’ll be just as expensive as united/delta/American ect (or possibly more).Thankfully out of houston there’s plenty of other airline options. Makes me wonder how much hobby will suffer if southwest isn’t filling flights due to price increases or less flights. Guess I can only hope I can find another cheap flight to finish off my $40 credit.
The hostility towards those needing wheelchairs is annoying. I have a disability and actually avoid flying as much as possible due to the hostility and judgment of others. Yes, there are some that don’t appear as disabled as those that judge them would like but it is none of their business. I will continue to drive when I can to avoid the scorn.
Can you please get more direct flights to Houston from buffalo ny?? That would be greatly appreciated. If you are going to have asign seats, why can you load the back of the plane first people in the front last??? Would that make boarding faster??
There needs to be big changes, hub spoke model, for simplicity.
Immediate purge of all the Executives that have redundant jobs or little to no enhancement to improve business.
Modernizing 70% of the fleet, after all newer planes means less maintenance issues.
Stage 2
Purge out all the old time employees who still think “the southwest way”
Run a more efficient airline by outsourcing workgroups that do not need to there.
Fire or reassign job duties of all supervisors whom have multiple positions with no responsibilities.