Southwest CEO says drastic changes could lure flyers back

Airlines have had it rough in the past five years. From Covid shutting down the world and dropping travel demand dramatically to inflation that meant no one could afford to go on vacation, it’s been a time of major turbulence for the airline industry.

And, with all the tariff talk, this uncertainty is not going to end anytime soon.

So it's definitely not surprising that Southwest Airlines has had some disappointing performance numbers. In the first quarter of 2025, for example, Southwest reported a $149 million net loss.

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Company CFO Tom Doxey has also warned of soft demand for the remainder of the year, and a likely larger revenue drop in the second quarter, especially as the carrier has also announced it will be reducing capacity.

Southwest’s response to the revenue issue has been questionable, with the company making some very unpopular decisions, including getting rid of one of the hallmark features of its brand – free checked bags.

Now, in a bid to win over customers, hopefully increase demand in the future, and get back to profitability, the company has announced some major potential changes coming down the pike.

Image source: William Thomas Cain/Getty Images

Southwest may make some major shifts

While attending a recent industry conference on June 25, CEO Bob Jordan discussed some potential changes the airline might make.

When speaking to CNBC, Jordan said, “Whatever customers need in 2025, 2030, we won’t take any of that off the table. We’ll do it the Southwest way, but we’re not going to say ‘We would never do that.’”

Here are some of the new moves that the airline is mulling over to try to woo new customers, including those who wouldn’t traditionally fly on a discount airline:

Adding new premium airline lounges so customers have a place to relax in comfort while waiting for their flight;
Adding a new premium class to its planes to provide a more comfortable flying experience for travelers who are used to first-class or business-class options on other carriers; and
Adding long-haul flights to its current lineup so travelers will be able to get to additional destinations.

“We know we send customers to other airlines because there’s some things you might want that you can’t get on us,” Jordan said. “That includes things like lounges, like true premium, like flying long-haul international.”

Some of Southwest’s changes have been unpopular, but the new ones wouldn’t be

News of these potential changes likely comes as a relief, as customers have faced one hit after another with Southwest's recent shifts.

The loss of free checked bags was a major blow, for example, as many consumers are tired of being nickel and dimed and facing tons of fees on airlines for basic services.

Open seating and a uniform cabin experience, which were once hallmarks of Southwest’s brand, have also been sunsetted, and assigned seats are coming as well.

While Jordan said these changes haven’t resulted in customers defecting to rival airlines, the reality is that many have gone into effect only recently or are still planned for the future, so the long-term impact is not yet known.

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Still, Jordan emphasized that the company’s focus now is on trying to push into the higher-end travel market. New lounges and premium-class seating could help the airline to do that, if those luxury travelers are willing to try out the carrier's offerings.