Southwest Rips Up its Business Model: Here's What's Changing


Bob Jordan, Southwest Airlines President and CEO, speaking on stage

Skift Take

Southwest's leadership team will be hoping that these changes will be enough win back customers and fend off a vocal activist investor.

Southwest Airlines announced a radical shake-up of its decades-old business model on Thursday. The low-cost carrier is transforming its boarding policy and adding premium seating in an effort to stay relevant to changing consumer preferences.

Bob Jordan, President and CEO of Southwest, described the project as “a transformational change that cuts across almost all aspects of the company.”

The headline move is premium seating. Southwest says this will be a “premium, extended legroom portion of the cabin.” Specific cabin l