Southwest has big plans to grow the business

As a reaction to sluggish performance and at the direction of new management (Elliott Management), Southwest is making massive changes to generate more revenue. This set of changes is broadly referred to as "modernization efforts". Most aim to capture high-margin revenue -- such as baggage fees and seat upgrades -- but others like upgrading their aging fleet aim to reduce operating costs. Their 2024 Annual Report goes into great detail about their plans. Spoiler alert: the plans basically align them with features/services/approaches already offered by other major airlines

Listed updates to grow the business (from annual report):

• Assigned seating

  • Introduction of an assigned seating model to better align with airline passenger preferences and create a revenue opportunity by charging for assigned seats

• Premium seating

  • Introduction of extra legroom options with additional pitch while maintaining a standard economy seat pitch

• Redesigned boarding model

  • Evolution of boarding process with seat assignments while focusing on operational efficiency and improving the Customer Experience

• Global airline partnerships

  • Creation of 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

• Getaways by Southwest

  • Vacation packages

• 24-hour operations

  • Introduction of red-eye flights to maximize utilization of aircraft

• Marketing & Distribution Evolution

  • Availability of schedules and tickets on third-party sites like Google Flights, Kayak, Skyscanner

• Service modernization

  • Transition to a digital-first model, offering more self-service options designed to augment the Company’s contact centers and airport experience.