Opinion: I'm flying with Southwest

I wanted to capstone the first phase of my research on Southwest with a brief opinion piece that illustrates my current thoughts after what I've learned.

Despite sluggish recent performance, I think that Southwest is poised for future success and, as an investor, I see this as an investment with growth potential.

First, I believe that Southwest is a legendary brand with a loyal customer base that will withstand and, perhaps after an initial shock, support these changes. They have a long-standing reputation of being a customer-centric, value-focused airline which puts a positive light on them when compared to other US airlines. I have personally taken hundreds of Southwest flights (primarily during 2014-2016 when I was traveling a lot for work) and had a great overall experience. 10/10 would do again. I believe that if Southwest can make the changes they've planned without losing the "heart" AND without alienating the budget-conscious customers that have made them successful in the past, they will retain their existing customers while also attracting new customers. After the initial shock of the changes, I believe that all of these customers will reap the benefits.

Second, I think that Southwest's existing infrastructure positions them well to successfully execute on these changes. This is not an airline that building from the ground up; this is an established airline that is expanding on an already strong foundation. Moreover, the things they are doing have been proven out by competitors so the risk is relatively low. Southwest is due for an upgrade and, as long as their financials will support it, these changes will make for an all-around better customer experience with more options to maximize the experience.

In conclusion, I think this is a buy with an appropriate amount of caution given what I know now. I would not throw my life savings into this investment but I think it is a safe investment to buy with plans to hold for some time. Stay tuned to see if this changes as I dive into future research phases!