Latest news with #BobJordan
Yahoo
6 days ago
- 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.
Daily Mail
12-07-2025
- Business
- Daily Mail
Southwest CEO justifies controversial shift to ‘Bags Fly Free' policy
On behalf of Southwest Airlines, welcome aboard flight S&P 500 — with nonstop service to Wall Street. In an interview with The New York Times , the airline's CEO, Bob Jordan, was asked how frequently he checks the stock's performance. The answer likely won't come as a surprise to travelers still frustrated over the airline's decision to end its five-decades-long 'bags fly free' policy. 'I watch it constantly. Daily,' Jordan said. In March, the company announced it would start charging customers for checked bags for the first time in the company's history. The day of the announcement, the stock surged 21 percent, boosting the value of Jordan's own shares by an estimated $871,000 . In a statement to a Southwest spokesperson defended Jordan's approach. But that alignment — between stock performance and customer satisfaction — hasn't been so clear to many travelers. The company's bag-checking reversal came after several other transformational shifts, including new basic economy fare tiers , the end of open seating, and the first mass layoff in Southwest's history . Many of the changes followed mounting pressure from activist investor Elliott Investment Management, which took a $2 billion stake in the airline in June 2024. Elliott publicly criticized Southwest's 'outdated' business model — and called for Jordan's removal. Jordan has framed the changes as a response to post-pandemic customer preferences. 'If you don't follow your customers, you look up one day and your products just aren't attractive any longer,' he told the New York Times. 'The move to bag fees is really about choice.' On social media, dozens of customers criticized the CEO's comments about customer choice, saying they came off as 'tone deaf' or even 'gaslighting.' 'Southwest used to be an employee-first airline, then they were customer-first,' one flier wrote in a top-voted Reddit post. 'Now they're shareholder-first.' In March, communications specialists told that the company's baggage fee rollout was especially rough on customers. 'Every company is focused on the bottom line,' Eric Wein, a California-based communications executive, said. 'But it's surprising that Southwest seemed to have lost sight of its customer loyalty and brand appeal in making some of these rather necessary financial moves.' But despite the pushback, the financial upside to the policy changes has been hard to ignore.
Forbes
09-07-2025
- Business
- Forbes
CEO Defends Southwest Baggage Policy Change To Frustrated Customers
DALLAS, TX - SEPTEMBER 26: Bob Jordan, CEO of Southwest Airlines, speaks to media during Southwest Airlines Investor Day at Southwest Airlines Headquarters on September 26, 2024 in Dallas, Texas. (Photo by Sam Hodde for The Washington Post via Getty Images) The Washington Post via Getty Images Southwest Airlines CEO Bob Jordan recently sat down with the New York Times to discuss the airline's flurry of changes to some of its core brand identifiers, such as free checked bags, no premium seats and the infamous open-seating policy. In the interview, Jordan attempted to reframe the airline's changes as less of a strategic pivot and more of a win for its current customers. The message? It's all about 'choice.' The reality? For many customers, it seems to be more about shifting Southwest's identity to entice high-value travelers—frequent fliers and business travelers—and unlocking new revenue with ancillary fees. Here are my top takeaways from the interview: Long-time Southwest customers are used to getting two free checked bags. But Jordan explained that his customers' preferences have changed. What He Said: "Customers today want a lot of choice, especially coming out of the pandemic,' Jordan told the Times. 'The customer's needs and wants are just different. If you don't follow your customers, you look up one day and your products just aren't attractive any longer. The move to bag fees is really about choice." 'If you look on the website today, we have a wider variety of products, including this new basic fare that comes with a lot of restrictions,' Jordan continued. 'For just a few more dollars, you can buy up to the next fare, and it has fewer restrictions.' There are now four fare categories—Basic, Wanna Get Away Plus, Anytime and Business Select—and only Business Select receives free checked bags (2). All the other categories must pay $35 for the first bag, $45 for the second. There are other ways to still get a free checked bag, but they require a commitment to the airline via loyalty programs and credit cards. Rapid Rewards A-List Preferred members receive two free checked bags, while A-List members and Rapid Rewards Credit Cardmembers get one. Analysis: In the interview, Jordan tried to show how bag fees are a good thing for customers, perhaps even something we have wanted all along. For me, it didn't hit home. While the jump between fare categories may be 'just a few more dollars' to Jordan, my own browsing of fares has shown it's a jump of more like $40 or $50 in many cases (feel free to do your own research). And the difference between Basic and Business Select seems to be about $100 to $150, or more in some cases. In this way, when Jordan says that charging for bags is about choice, it feels very contrived. Sure, you could choose to upgrade to Business Select to get two free checked bags (and other perks), but it's not going to save any money. Bottom Line: An attempt by Jordan to spin bad news for customers into good news. No one is celebrating bag fees, even if they like parts of the new fare class model (such as point multipliers or refundability, for example). Upgrading from Basic to Business Select will most likely cost more than paying for your checked bag, which undermines his talking points. Customers may wonder if the decision to charge for bags was actually based on a mix of potential income, industry competition and attracting new business (see below). Jordan Says They Are Not Abandoning Old Clientele To this end, the question was asked: 'A lot of the changes [such as new fare categories, the introduction of premium seats and ending the open-seating policy] reward frequent fliers. But is Southwest de-emphasizing price-sensitive people who don't travel as much?' Southwest Airlines is ending its free checked bag policy as well as open seating. getty What He Said: 'We're not abandoning anybody. You are going to get great fares on Southwest Airlines, period,' Jordan responded. But he went on to admit that the airline was adapting and gunning for new business, perhaps from people who would previously not have flown Southwest. 'You say 'no' to too many things, and when you look up years later, you become irrelevant to a lot of folks,' he added. 'We're just not going to do that.' Analysis: In this response, we get closer to the real reason Southwest is making big changes—to become relevant to other types of travelers, especially frequent fliers who seek premium seats and better loyalty perks. Many people have pointed out that Southwest arguably decided to charge for bags because of the potential revenue it will create. Another potential reason is to free up a perk to offer to cardholders and loyalty members. After all, if everyone gets a free checked bag, what's the point of enrolling in a loyalty program? In 2026, Southwest will introduce premium seats for the first time. While we await the specifics, first class and premium economy choices appear imminent. Southwest is hoping these options will attract frequent fliers—such as business travelers—who value a comfortable ride and loyalty earnings above cost savings. Bottom Line: In his response, Jordan is assuring two things: The continuance of Southwest's low-cost fares (via the Basic fare class) as well as increased options for travelers who prioritize perks over penny counting. We won't know the full extent of it until we see what premium seats are added in 2026, but the biggest question will be: Can Southwest stand on both sides of the fence? Can they continue to appeal to their base of budget travelers while simultaneously attracting new frequent fliers? Jordan Says Termination Of Open-Seating Policy Good For Staff Another long-standing pillar of Southwest's brand is its open-seating policy, but that too will be discontinued beginning in 2026. In the interview, Jordan focused on the impact the policy has on staff. Southwest Airlines CEO Bob Jordan said the timing of the policy changes had nothing to do with public pressure from a major investor. getty What He Said: 'Our employees are excited about the changes. Because if you think about it, if in the open-seating world a family gets on and they can't sit together, the flight attendant is having to police that in the cabin. Our open-seat boarding can cause a lot of pre-boards, and our agents are having to police that. You have people who paid for early boarding, and then we have more pre-boards than anybody else. So folks that paid for earlier boarding are going, 'Well, wait, why?'' Analysis: I like what Jordan said about the pressure the open-seating policy puts on airline staff. No doubt, situations arise that cause headaches, and having assigned seats will do away with all of that stress. Assigned seats will be nice for travelers, too. For the first time ever, passengers will be able to select their seat when booking, which could provide a sense of calm to anxiety-prone passengers and families who might worry about where they will sit under the first-come, first-serve policy. Surely, there will be a cost to selecting seats ahead of time, but those details remain to be seen at this moment. We also have to keep in mind that a big part of the new assigned seating policy will be the creation of premium seats. We don't have details yet, but a first class is coming to Southwest, and probably other upgraded categories as well, such as premium economy. These premium seats will bring in ancillary revenue as well as be provided to qualifying loyalty members, similar to other domestic airlines. For example, on American Airlines, those with airline status can select Main Cabin Extra seats for free, while general passengers can pay for the upgrade. Bottom Line: The introduction of assigned seats on Southwest is a major change that has yet to be fully realized, but it might ultimately change the face of the airline more than anything. How you perceive the new policy will depend on your perspective, but it stands to reason that most frequent fliers will appreciate the change, especially if they obtain status and can access the premium seats as a perk. Jordan Suggests Timing Of Changes And Criticism Was Coincidental Finally, there was an interesting question about how much influence the public pressure put on Jordan by the hedge fund Elliott, one of Southwest's biggest shareholders, had on his decision to implement these changes now. Last year, they called for his removal as well as for changes in Southwest's operations. What He Said: 'I've been asked a lot about Elliott and what went on last summer. We had an investor day on Sept. 26 where we laid out assigned seating, extra leg room and a number of things. All of that strategy was well underway, way ahead of Elliott. So that was not driven by Elliott. They are a large shareholder, but they're one out of many.' Analysis: There should be no surprise that financial investors can impact the future of a corporation's direction. After all, that's the whole point of publicly-traded companies, like it or not. We don't have much public evidence to answer this question one way or another, but reports about Elliot's dissatisfaction were circulating last June, so Jordan's answer doesn't quell much doubt. MORE FROM FORBES Forbes Southwest Airlines Policy Changes: Is More Choice What Customers Want? By Roger Dooley Forbes How Much Will Southwest Airlines Profit Off Charging For Bags? By Will McGough Forbes Investor With Near $2 Billion Stake Puts Southwest Airlines' Free Checked Bag Policy At Risk By Roger Dooley Forbes Delta Airlines Goes After Southwest Airlines Flyers With Status Offer By Roger Dooley Forbes American Airlines Targets Southwest's Most Loyal Customers By Roger Dooley
Skift
09-07-2025
- Business
- Skift
Airlines Face Murky Outlook Ahead of Earnings Season
Many Wall Street analysts are anticipating that airlines will have a tepid earnings season as tariff uncertainty and declining U.S. dollar weigh down on the industry. Despite experiencing record summer holiday travel, the outlook for the airline industry is still murky, as economic uncertainty continues to weigh down on consumers. With Delta Air Lines expected to report second quarter earnings early Thursday, Wall Street analysts are widely expecting airlines to report stable demand, however that demand will be down from previous projections for the year. 'We believe US airline shares will be biased downward over the near-term due to persistent pricing weakness,' TD Cowen analyst Tom Fitzgerald wrote in an investor note on July 2. 'We do not expect them to catch a bid until there's greater clarity on consumer demand and 2026 industry pricing. This year increasingly looks like a lost year.' Southwest CEO Bob Jordan noted in an interview with The New York Times that airlines were already starting to sell discounted summer fares, something which he said is unusual for the industry during a high demand season. 'People are waiting to make decisions,' Jordan said. 'This is a generality, but the summer would never be on sale like it is today.' He added: 'You see weakness all over the place.' In response to growing uncertainty, multiple airlines, including Delta, American Airlines, Southwest Airlines, and Alaska Airlines pulled their 2025 outlooks. Jordan had also previously said that the industry was already in a recession. 'While the broader macro environment has been more resilient than feared, overall airline industry demand has looked tepid,' Fitzgerald said in the note. Airlines May Make More Capacity Cuts Melius Research analyst Conor Cunningham said in a note on Monday that second-quarter results would be 'largely in line with expectations, but far from memorable.' 'The booking curve remains compressed as consumers remain hesitant on booking further out,' Cunningham said. During the first quarter, airlines said they would cut capacity and underperforming routes to better match consumer demand. However, for June and July, historically some of the busiest months in the industry, airlines did not scale back capacity enough, Cunningham said. 'Back in Apr. / 1Q25 earnings, the industry vowed to reduce supply after July if demand did not improve,' Cunningham said in the note. 'Fast forward to today, that theme is largely playing out and now they need to double down, if not triple down, on supply discipline.' Is International Travel Still a Bright Spot? So far, international travel has been a bright spot for airlines. Both Delta and United Airlines found during the first quarter that high demand for international travel had offset the softness in domestic travel demand. United said in a Fourth of July forecast that it was still seeing strong international demand, with bookings up 5% this summer compared to last year. However, Cunningham cautioned that international travel could be less resilient in the future due to a weakening U.S. dollar. Deutsche Bank said in a note in April that it was forecasting a 'mild' recessionary outlook for the U.S. airline industry during the second half of 2025. Airlines are still going full steam with plans to expand their international and premium offerings. United recently operated its first flight to Greenland and announced that it would refresh its cabins for international flights, introducing a premium business cabin. American also unveiled its new premium Flagship Suite that will be on Boeing 787s. What am I looking at? The performance of airline sector stocks within the ST200. The index includes companies publicly traded across global markets including network carriers, low-cost carriers, and other related companies. The Skift Travel 200 (ST200) combines the financial performance of nearly 200 travel companies worth more than a trillion dollars into a single number. See more airlines sector financial performance. Read the full methodology behind the Skift Travel 200.
