Latest news with #BobJordan
USA Today
a day ago
- Business
- USA Today
Southwest Airlines CEO: Company could eventually introduce lounges, long-haul flights
Against the backdrop of lower than expected earnings, Southwest Airlines CEO Bob Jordan hinted that the carrier will be doing more in the future to change its business model and become more like its U.S. competitors. Southwest reported earnings of $7.24 billion in the second quarter, though analysts previously expected the figure to be closer to $7.29 billion. Some of those changes could even include introducing lounges or expanding its fleet to serve destinations that are farther-afield from its current, domestically-focused network. "I want to reiterate that our current initiatives are not the endpoint in our product strategy and evolution. As we've stated before, we are committed to evolving further to meet the needs of our current and our future customers," Jordan said during the company's second quarter earnings call, which took place July 24. Southwest has already introduced checked bag fees and announced that it will officially introduce assigned and extra legroom seating in January 2026. Tickets for those flights go on sale next week. While those and other changes make Southwest more like other airlines, Jordan said they're just the first step in the company's overhaul. Among the "limited number of things" he said the airline can do down the road to capture more traveler demand are steps like introducing lounges or expanding the network by adding longer-range planes to its fleet. While Jordan acknowledged Southwest has no current plans to implement any of those measures, he said, "we're going to follow the customer and work very hard to give you reasons not to split your wallet," meaning to make Southwest more of a one-stop shop for airline customers. Contributing: Reuters Zach Wichter is a travel reporter and writes the Cruising Altitude column for USA TODAY. He is based in New York and you can reach him at zwichter@
Forbes
a day ago
- Business
- Forbes
Southwest Stock Down 12% After Company Slashes Profit Outlook
Southwest Airlines deeply slashed its profit outlook for 2025, blaming weak domestic demand as it pushes forward with 'transformational' changes driven by an activist hedge fund investor. Southwest Airlines stock plummeted Thursday after the company slashed its profit outlook for the ... More year. getty Southwest's share price was down more than 12% early Thursday afternoon after the carrier cut its forecast for full-year earnings before taxes to $600 million to $800 million—53% to 65% below its earlier estimate of $1.7 billion. The Dallas-based carrier missed Wall Street's second-quarter earnings consensus estimates by 16%. Even so, Southwest executives said travel demand has begun to stabilize compared to April, when the carrier pulled its 2025 financial guidance due to economic uncertainty in the wake of President Donald Trump's 'Liberation Day' tariffs. The airline's executives noted weaker demand for domestic main cabin (economy) leisure travel this year—echoing what Delta, United and American reported. Southwest Airlines is undergoing what CEO Bob Jordan characterized to investors on its quarterly earnings call Thursday as a 'transformational period.' In June 2024, Southwest became the target of activist hedge fund investor Elliott Investment Management, which took a $1.9 billion stake in the carrier and presented a plan to achieve a $49 price per share 'within 12 months.' While far from a majority, Elliott's roughly 11% interest in the company was enough to give it an outsized voice as one of the airline's largest single shareholders. The next month, Southwest conceded to many of Elliott's key asks and announced sweeping changes to its business model, including ditching its half-century open seating model in favor of assigned seats; offering premium, extended legroom seats; and introducing overnight 'red-eye' flights. By October, Southwest had agreed to restructure its board to avert a proxy fight. Southwest's share price was about $33 on Thursday afternoon. 'We anticipate [Southwest] will remain a controversial stock,' Savanthi Syth, an analyst at Raymond James covering the airline sector, wrote to investors, noting Southwest also announced a new $2 billion share buyback program to be completed in up to two years. Is Air Travel Demand Down Everywhere In The World? No. In May, the global airline industry reported 5% growth in demand compared to the same month last year, with Asia-Pacific taking the lead at 9.4% growth. 'The outlier was North America, which reported a 0.5% decline, led by a 1.7% fall in the US domestic market,' according to the latest monthly report from the International Air Transport Association (IATA). While U.S. airlines say they see increased domestic demand later in the year, it's not known how Trump's raft of tariffs—due to kick in Aug. 1—will impact consumer confidence. Typically, tariffs lead to higher inflation, which tends to contract discretionary spending on items like vacations. Have Doge Cuts Impacted Southwest's Business? In a Securities and Exchange Commission filing in March, Southwest cited 'less government travel' as one reason for lowering its full-year outlook. Further Reading American Airlines Stock Down 8% As Weak Domestic Demand Dims Outlook (Forbes)
Yahoo
a day ago
- Business
- Yahoo
Southwest Airlines Reveals Details About Its New Seating and Boarding Policy
The airline shared when things are changing. Southwest Airlines will debut its new assigned seating policy in January 2026, bringing an end to the airline's once signature process of open seating. The airline's new boarding procedure will go into effect for flights scheduled on and after Jan. 27, 2026, according to Southwest, during which passengers will board through group zones and sit in assigned seats. While the process won't fully roll out until next year, travelers will be able to start booking tickets and reserving seats for after the January launch starting July 29. 'Assigned seating unlocks new opportunities for our Customers, including the ability to select Extra Legroom seats, and removes the uncertainty of not knowing where they will sit in the cabin,' Tony Roach, the executive vice president for customer and brand at Southwest, said in a statement. 'This is an important step in our evolution, and we're excited to pair these enhancements with our legendary Customer Service.' When travelers are able to choose their seat will vary depending on the type of fare they book and if they are members of Southwest's loyalty programs. Rapid Rewards Credit Card members, for example, will be able to select a seat at booking or within 48 hours of their scheduled departure (depending on which card they hold), while A-List and A-List Preferred customers will be able to select their seat at booking, all regardless of the type of fare they purchase. In addition, passengers will also have the option of purchasing a seat upgrade. Southwest said the seating policy change will offer customers more options and control over their travel experience. The new boarding process will include several groups. Top-tier loyalty members and those with premium seats will board first, while passengers traveling on a "basic" fare will board new policy has been the talk of the travel industry since as early as April 2024 when speculation started to spread as executives, including CEO Bob Jordan, made comments about the future of the airline. This is also not the first major change for Southwest this year. In May, the airline ended another long-enjoyed (and often tested) perk: its 54-year-old policy of offering free checked bags. However, travelers who are members of Southwest's loyalty program—as well as credit card holders—can still enjoy free bags when they fly. That same month, Southwest overhauled its fare classes, introducing new options of "Choice Extra," "Choice Preferred," "Choice," and "Basic." Read the original article on Travel & Leisure Solve the daily Crossword
Yahoo
17-07-2025
- Business
- Yahoo
SOUTHWEST AIRLINES TO DISCUSS SECOND QUARTER 2025 FINANCIAL RESULTS ON JULY 24, 2025
DALLAS, July 17, 2025 /PRNewswire/ -- Southwest Airlines Co. (NYSE: LUV) invites you to listen to a live webcast of its second quarter 2025 financial results. Details are as follows: When: Thursday, July 24, 2025, at 12:30 PM Eastern Time Who: Bob Jordan, President, Chief Executive Officer, and Vice Chairman of the Board of DirectorsAndrew Watterson, Chief Operating OfficerTom Doxey, Executive Vice President and Chief Financial Officer Web Address: To access the live audio webcast and subsequent replay, click on the link above, or go to and click on "Investor Relations" under the "About Southwest" menu at the bottom of the page. The audio webcast can be found under "News & Events" in the drop down menu. Registration for this event begins 20 minutes prior to the start of the call. View original content: SOURCE Southwest Airlines Co. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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Travel + Leisure
16-07-2025
- Business
- Travel + Leisure
Southwest to Add a New Route to This Caribbean Island Famous for Its Crystal-clear Waters
It just got easier to get a dose of vitamin sea. Southwest Airlines is launching new service to St. Thomas in the U.S. Virgin Islands next year, adding the Caribbean destination to its roster. The new flights to St. Thomas' Cyril E. King International Airport (STT) are expected to kick off in early 2026 and will mark the carrier's ninth island destination in the Atlantic Basin, according to the airline. However, the new flights are subject to government approvals and it was not immediately clear where Southwest would operate the flights from. 'We want to make Southwest Airlines the easy and obvious choice every time, and this is another meaningful step in our ongoing transformation,' Southwest CEO Bob Jordan said in a statement, adding the airline was "listening closely to what our Customers want." In addition to St. Thomas, the airline teased it planned to add two more new destinations, which it said would be announced this summer. The carrier did not offer any insights about where these destinations would be. For travelers who don't want to wait until 2026, they can book flights through several other airlines currently serving STT, including American Airlines, Cape Air, Delta Air Lines, and United Airlines. The St. Thomas airport is also a hub for inter-island and regional travel. Passengers can book flights to San Juan, St. Croix, and other destinations from there. The U.S. Virgin Islands continue to be a popular destination among air travelers and cruise passengers. More than 930,000 people traveled to the region by air in 2024, according to the U.S. Virgin Islands Department of Tourism, representing a 16.5 percent increase compared to 2023 and a new record high. The region is also a popular stop with cruisers, with Disney Cruise Line, Celebrity Cruises, Royal Caribbean, and Virgin Voyages all docking there. More than 1.7 million passengers disembarked and explored the region, according to the tourism department. "As a destination, we continue to explore, elevate, and improve, which further supports the ongoing goal to build upon our commitment to be a premier Caribbean destination," Joseph Boschulte, the commissioner of the U.S. Virgin Islands Department of Tourism, said in a statement.
