Is Southwest’s next top-notch, long-haul flights and airport lounge OK? After all changes to the airline’s long-standing business model in recent months, including bagging fees, designated seats and large-scale loyalty programs, the company’s executives seem to have not ruled out anything.
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“We’re not stopping here,” Southwest CEO Bob Jordan said at an industry conference in New York on Thursday.
Jordan says Southwest plans to unveil its next long-term plan next year — the next chapter, so far, has so far welcomed designated seats, $35 bags, and the first time it is the basic economy on airlines.
What else might happen?
“No reveal today,” Jordan warned, but he also proposed some “hypothetical” examples that airlines might consider.
“For many people who love the Southwest, we can’t do things – we can’t provide the products you want. Just like first class. We can’t get you into long-distance international destinations. If the lounge is important to you, we don’t have a lounge, we don’t have a lounge.”
He reiterated: “I didn’t predict any of these things.”
Jordan points out that in some major southwest cities, consumers have “super high” demand for lounges.
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He also admitted that rethinking Southwest’s international strategy (and moving beyond short-haul flights to places like Mexico and the Caribbean) “may require you to consider another aircraft.” The airline currently has a completely narrow fleet of Boeing 737s.
“I promise you, … we will never be missing five years from now,” Jordan said.
Continuously evolved, but increasingly different
Again, it can be said that none of this is formal “on the table”.
But from bidding farewell to its logo trying to escape fares (remember those ads?), to launching its one-of-a-kind boarding process earlier this year and launching Red-eye flights, showing Southwest in recent months as it is an increasingly more airline, an airline that is increasingly fearing change.
Financial stress has a lot to do with it.
Its operators, like Delta Airlines and United Airlines, have soared to the highest profits of American Airlines, driven by its strong international network, premium seats and a lucrative credit card portfolio.
Meanwhile, Southwest has not maintained its historically high profits – a driving force behind the shift the airline has experienced in recent months.
Southwest Chief Operating Officer Andrew Watterson admitted last month: “Old models don’t work, so we’re already at the hub.”
Compete with premium airlines
However, Southwest’s hub has a distinct reality: Yes, it will soon offer more quality options in its long ranking. Yes, it will offer “upgrades” to Class A elite members and certain fast reward credit card holders.
But even if Southwest races with Delta, United, American and Alaska Airlines charge for bags (eventually on some fares), it still doesn’t have top-notch seats and lounges. Even Frontier Airlines adds true quality seating, and JetBlue announces lounges and top-notch domestic products to complement its long-distance mint suite.
As airline observers wrote in March, this contrast can be arguably putting the Southwest at a disadvantage as it begins to look like competitors in other sectors.
A few weeks ago, I compared Tony Roach, Executive Vice President of Customers and Brands.
Roach warned: “There is nothing to announce in the lounge or first class,” a tone similar to what Jordan said in his speech this week.
“But you can almost assume that if this is a product, our customers will eventually want and need to get demand from Southwest Airlines, and we have proven that we have to continue to grow, please meet more demands,” he added. “We continue to look at the long-term, Southwest future, and we continue to offer more things that will give people more reasons to choose Southwest.”
Plan for the future
This spring, whether customers will continue to choose a very different Southwest region.
So far, such a good executive claimed last month that the airline has not sent passengers to competitors.
“We see no evidence after announcing these changes,” Jordan told analysts in April.
However, he suggested this week that maintaining this momentum could require the Southwest to continue to develop.
As you can imagine, Quest could lead to airlines getting more features and flights, i.e., in recent years its competitors (and their customers) flocked to.
“Because we can’t offer certain products and take you to certain destinations, even customers who love the Southwest, we force you to fly to others. [credit] “The card promises to “study” the gap in the coming months,” Jordan said Thursday.
He added: “I will consider this as a question for 2026.”
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