Overview

• Southwest Airlines announced a comprehensive turnaround plan, aiming to generate $4 billion in incremental earnings by 2027.
• Key changes include the introduction of assigned seating starting in 2026 and premium seating options with extra legroom.
• The airline will maintain its popular policy of two free checked bags despite pressure to eliminate it.
• Southwest plans to offer red-eye flights beginning in February 2025 and expand its network through international partnerships, starting with Icelandair.
• The board authorized $2.5 billion in share buybacks and appointed former Spirit Airlines CEO Bob Fornaro to the board to address investor concerns.