Latest news with #BobJordan
Business Insider
a day ago
- Business
- Business Insider
Southwest CEO says he's open to adding lounges — and flights to Europe
Southwest Airlines ' transformation could become even more radical, as its CEO eyes plenty of potential changes. "Whatever customers need in 2025, 2030, we won't take any of that off the table," Bob Jordan told CNBC on Wednesday. "We'll do it the Southwest way, but we're not going to say 'We would never do that.'" He added that some people decide not to fly with Southwest because it doesn't offer "things like lounges, like true premium, like flying long-haul international." The Dallas-based budget airline has started overhauling its business model in recent months. Since the pandemic, passengers' spending habits have changed as more are now willing to pay for premium options. Coupled with increased fuel and labor costs, plus overcapacity in the domestic market, that spelled bad news for budget airlines' bottom lines. Southwest has also faced pressure from the activist investor Elliott Investment Management. The stock is up more than 10% over the past 12 months, but flat over the past five years. Last July, the airline announced that it would end its signature open-seating policy — instead encouraging customers to pay to choose where they sit and for upgrades like extra legroom. Ryanair, the European budget airline modeled on Southwest, introduced allocated seating more than a decade ago. And last month, Southwest ended its trademark policy of " two bags fly free." It now costs $35 for a first checked bag and $45 for a second one — although all loyalty members and credit card holders can get one for free. It's clear that Southwest is angling itself to encourage more loyalty and promote upgrades, but Jordan's comments suggest it isn't done just yet. The airline serves a number of destinations in Mexico, Central America and the Caribbean. Last month, Southwest asked the Department of Transportation for permission to fly to any of the 100-plus countries with which the US has an Open Skies agreement. In the filing, the airline said that being granted such permission would "promote competition and increase the traveling public's ability to access Southwest's high-quality, low-fare service." A Southwest spokesperson told Business Insider that the filing was "not necessarily indicative of anything forthcoming." On Wednesday, Jordan told CNBC: "No commitment, but you can certainly see a day when we are as Southwest Airlines serving long-haul destinations like Europe." "Obviously you would need a different aircraft to serve that mission, and we're open to looking at what it would take to serve that mission."
Yahoo
2 days ago
- Business
- Yahoo
Southwest Airlines Announces It's Considering 3 Big Changes
Changes could be coming to Southwest Airlines over the next few years. While at an airport industry conference this week, Southwest Airlines CEO Bob Jordan spoke about the future of the Dallas-based airline. His goal is to stop losing customers to competitors. "Whatever customers need in 2025, 2030, we won't take any of that off the table," Jordan told CNBC. "We know we send customers to other airlines because there's some things you might want that you can't get on us. That includes things like lounges, like true premium, like flying long-haul international. I want to send fewer and fewer customers to another airline." Speaking of airport lounges, Jordan mentioned Southwest's familiarity with Nashville International Airport. He said, "Nashville loves us, and we know we have Nashville customers that want lounges." Jordan is also aware of travelers' need for privacy and leg room while flying. American Airlines, Delta Air Lines and United Airlines all offer luxurious seats for an expensive price. It's possible Southwest follows suit. As for long-haul destinations, Jordan said Southwest will consider acquiring aircrafts capable of making nonstop trips to Europe. "No commitment, but you can certainly see a day when we are as Southwest Airlines serving long-haul destinations like Europe. Obviously you would need a different aircraft to serve that mission and we're open to looking at what it would take to serve that mission." In the meantime, Southwest is waiting for more Boeing 737 Max 7s. That's the only definite move being made by the higher-ups. Southwest Airlines Announces It's Considering 3 Big Changes first appeared on Men's Journal on Jun 25, 2025
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The Independent
3 days ago
- Business
- The Independent
Southwest Airlines considers adding premium class and airport lounges to compete in crowded market
Southwest Airlines is considering adding a premium class, airport lounges, and even long-haul international flights to compete in a crowded market for high-spending customers. Speaking to CNBC at an industry conference on Wednesday, CEO Bob Jordan said nothing was off the table. '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,'' Jordan said. 'We know we send customers to other airlines because there's some things you might want that you can't get on us. That includes things like lounges, like true premium, like flying long-haul international.' Southwest, founded in 1967 and headquartered in Dallas, is the fourth-largest airline in North America by passengers carried. It now finds itself in the midst of a transformation. In addition to an increasingly competitive market, this reinvention was partly sparked by a disastrous holiday meltdown in December 2022, which resulted in severe delays and thousands of cancellations. The U.S. Department of Transportation fined the airline a record $140 million. Southwest's business model, characterized by high productivity from both aircraft and employees, along with quick turnaround times, has influenced other carriers worldwide, including WestJet in Canada, as well as Ryanair and EasyJet in Europe. However, in a changing marketplace, it faces increased pressure from competitors, with an activist investor — Elliott Investment Management — pushing the airline to increase revenue, just as fares in the U.S. are falling, amid economic uncertainty. Long-standing policies that distinguished it from many competitors have been dropped: open seating, a uniform cabin experience, and allowing all customers to check two bags for free. Just last month, major changes were introduced that have long been offered by competitor airlines, including no-frills basic economy tickets and baggage fees. Assigned seating will start in early 2026. Jordan said these changes have not led to customer defections to rivals, and there is more to come, with the next focus being to make changes for higher-end travel. The three largest airlines in the U.S. — Delta Air Lines, United Airlines, and American Airlines — have been adding more luxury tourism destinations, roomier (and therefore more expensive) seats, and have heavily invested in upgrading their airport lounges, which are seen by many customers as an important part of the travel experience. American unveiled plans to almost double its lounge space at its Latin America hub at Miami International Airport. While Jordan admits it is 'way too soon to put any specifics' on potential changes, he did drop some big hints. One of Southwest's strongest markets is at Nashville International Airport, where it holds a market share of more than 50 percent. 'Nashville loves us, and we know we have Nashville customers that want lounges. They want first class. They want to get to Europe, and they're going to Europe,' Jordan said. Currently, if Southwest passengers want those things, they have to book on another airline, and that also makes them more likely to take out a competitor's co-branded credit card, he noted. 'I want to send fewer and fewer customers to another airline,' he said. It's too early to say whether Southwest will make the shift to buying longer-haul aircraft, which it would need to serve destinations like Europe, Jordan said — the airline has relied on the Boeing 737 for more than half a century. As a stepping stone to that goal, Southwest has been forging international partnerships, so far with Icelandair and China Airlines. However, Jordan said that a Southwest plane landing in Europe at some point is on the table. 'No commitment, but you can certainly see a day when we are as Southwest Airlines serving long-haul destinations like Europe,' he said. 'Obviously, you would need a different aircraft to serve that mission, and we're open to looking at what it would take to serve that mission.'
NBC News
3 days ago
- Business
- NBC News
Southwest airport lounges? CEO says carrier is open to even more high-end changes
ARLINGTON, Texas — Southwest Airlines is considering airport lounges, more premium seating and even long-haul international flights to win over high-spending customers, CEO Bob Jordan said Wednesday. '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,'' Jordan said in an interview with CNBC at an airport industry conference. 'We know we send customers to other airlines because there's some things you might want that you can't get on us. That includes things like lounges, like true premium, like flying long-haul international.' Southwest is in the middle of a transformation. That has included undoing some of its policies like open seating, a uniform cabin and allowing all customers to check two bags for free, things that had set it apart from rivals in much of its 54 years of flying. But it has faced pressure from competitors, and an activist investor last year pushed the carrier to increase revenue. And airfare in the U.S. has dropped. Southwest and other carriers pulled their 2025 forecasts earlier this year, citing economic uncertainty. Jordan said Wednesday that the airline is continuing to see cheaper fares. 'The summer is generally never on sale, and the summer is heavily on sale right now,' he said. Despite making major changes to its business model, Jordan said the carrier hasn't seen customers defect to other airlines since it introduced no-frills basic economy tickets and bag fees late last month, policies rivals already had. But making changes at the high end is important, too, he said. Competitors like Delta Air Lines, United Airlines and American Airlines have added more luxury tourism destinations and roomier, more expensive seats, and they've also invested heavily in airport lounges. For example, earlier Wednesday, American unveiled plans to nearly double its lounge space at its Miami International Airport hub. Jordan said it's 'way too soon to put any specifics' on potential changes, but he called out Southwest stronghold Nashville International Airport — where the airline has a more than 50% market share, according to airport data — as a place where customers are hungry for luxury. 'Nashville loves us, and we know we have Nashville customers that want lounges. They want first class. They want to get to Europe and they're going to Europe,' he said. But getting those things means those customers have to book on another airline, which could make them more likely to add that rival's co-branded credit card to their wallets, too, he said. 'I want to send fewer and fewer customers to another airline,' he said. Jordan said it's also too early to say whether Southwest will make the shift to buying longer-haul aircraft, which it would need to go to Europe; it's relied on the Boeing 737 for more than half a century. Southwest has been forging international partnerships — Icelandair and China Airlines, so far— but a Southwest plane landing in Europe at some point is on the table, he said. 'No commitment, but you can certainly see a day when we are as Southwest Airlines serving long-haul destinations like Europe,' he said. 'Obviously you would need a different aircraft to serve that mission and we're open to looking at what it would take to serve that mission.' In the nearer term, Southwest is still awaiting deliveries of Boeing 737 Max 7s, the smallest plane in the Max family, which still hasn't won Federal Aviation Administration certification. Jordan said the manufacturer has made progress with more consistent deliveries recently, but Southwest doesn't expect to fly the Max 7 in 2026.
CNBC
3 days ago
- Business
- CNBC
Southwest airport lounges? CEO says carrier is open to even more high-end changes
ARLINGTON, Texas — Southwest Airlines is considering airport lounges, more premium seating and even long-haul international flights to win over high-spending customers, CEO Bob Jordan said Wednesday. "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,'" Jordan said in an interview with CNBC at an airport industry conference. "We know we send customers to other airlines because there's some things you might want that you can't get on us. That includes things like lounges, like true premium, like flying long-haul international." Southwest is in the middle of a transformation. That has included undoing some of its policies like open seating, a uniform cabin and allowing all customers to check two bags for free, things that had set it apart from rivals in much of its 54 years of flying. But it has faced pressure from competitors, and an activist investor last year pushed the carrier to increase revenue. And airfare in the U.S. has dropped. Southwest and other carriers pulled their 2025 forecasts earlier this year, citing economic uncertainty. Jordan said Wednesday that the airline is continuing to see cheaper fares. "The summer is generally never on sale, and the summer is heavily on sale right now," he said. Despite making major changes to its business model, Jordan said the carrier hasn't seen customers defect to other carriers since it introduced no-frills basic economy tickets and bag fees late last month, policies rivals already had. But making changes at the high end is important, too, he said. Competitors like Delta Air Lines, United Airlines and American Airlines have added more luxury tourism destinations and roomier, more expensive seats, and they've also invested heavily in airport lounges. For example, earlier Wednesday, American unveiled plans to nearly double its lounge space at its Miami International Airport hub. Jordan said it's "way too soon to put any specifics" on potential changes, but he called out Southwest stronghold Nashville International Airport — where the airline has a more than 50% market share, according to airport data — as a place where customers are hungry for luxury. "Nashville loves us, and we know we have Nashville customers that want lounges. They want first class. They want to get to Europe and they're going to Europe," he said. But getting those things means those customers have to book on another airline, which could make them more likely to add that rival's co-branded credit card to their wallets, too, he said. "I want to send fewer and fewer customers to another airline," he said. Jordan said it's also too early to say whether Southwest will make the shift to buying longer-haul aircraft, which it would need to go to Europe; it's relied on the Boeing 737 for more than half a century. Southwest has been forging international partnerships — Icelandair and China Airlines, so far— but a Southwest plane landing in Europe at some point is on the table, he said. "No commitment, but you can certainly see a day when we are as Southwest Airlines serving long-haul destinations like Europe," he said. "Obviously you would need a different aircraft to serve that mission and we're open to looking at what it would take to serve that mission." In the nearer term, Southwest is still awaiting deliveries of Boeing 737 Max 7s, the smallest plane in the Max family, which still hasn't won Federal Aviation Administration certification. Jordan said the manufacturer has made progress with more consistent deliveries recently, but Southwest doesn't expect to fly the Max 7 in 2026.
