Southwest CEO vows change as activist investor pushes for new leadership

Southwest CEO vows change as activist investor pushes for new leadership


A Southwest commercial airliner takes off from Las Vegas on Feb. 8, 2024.

Mike Blake | Reuters

Southwest Airlines CEO Bob Jordan said the company is ready to adapt to changing customer trends like premium seating as pressure from an activist investor mounts.

“We will adapt as our customers’ needs adapt,” Jordan said at an industry event hosted by Politico on Wednesday.

Jordan’s comments came two days after hedge fund Elliott Management disclosed a $1.9 billion stake in Southwest and said the carrier needs a new CEO and new chairman.

Jordan told investors in April that the airline is considering major changes to its product, potentially ditching its system of unassigned seating that has made the Dallas-based carrier a standout among airlines, and even reevaluating its single class of service.

Jordan reiterated those considerations on Wednesday, saying that the airline, which started flying in 1971 and now carries more passengers in the United States than any other, is in its “third generation.” He said the airline’s leaders are open to big shifts to increase revenue, while rivals like Delta and United capitalize on customers willing to pay more for a seat with more space or other perks.

Elliott didn’t immediately respond to a request for comment about Jordan’s remarks on Wednesday.

Southwest on Monday said in response to the activist campaign that its board backed the company’s leaders and the company strategy, while it will also “look forward to further conversations with Elliott.”

Southwest has struggled with weaker margins than some of its competitors as it faces increased airline capacity in the U.S., shifting post-pandemic travel patterns and a spiraling problem that is out of their control: delays of new aircraft from Boeing, its sole aircraft provider, as that company grapples with several manufacturing and safety crises.

Southwest had also taken months to find its footing after a yearend holiday meltdown in 2022 cost it more than $1 billion. The company later acknowledged its technology couldn’t handle the hundreds of flight and crew changes triggered by a winter storm, prompting it to quickly upgrade its system.

Meanwhile, Jordan said Southwest has continued to work toward improving the customer experience. It’s upgraded its inflight Wi-Fi and added power outlets on its fleet of Boeing 737s in recent years.

“I think customer preference is going beyond that,” Jordan said Wednesday. The carrier has spent months surveying customers to figure out what changes are needed, he added.

“It’s been several years since we last studied this in-depth, and customer preferences and expectations change over time,” an airline spokeswoman told CNBC. “We are also studying the operational and financial benefits of any potential change.”

— CNBC’s Rohan Goswami contributed to this article.



Source

Airlines tell passengers to prepare for delays as government shutdown continues
Business

Airlines tell passengers to prepare for delays as government shutdown continues

The Hollywood Burbank Airport air traffic control tower stands in Burbank, California, on Oct. 6, 2025. Mario Tama | Getty Images Travelers should prepare for potential flight disruptions this holiday weekend as the government shutdown continues, a group representing the largest U.S. airlines said Friday. Air traffic controller shortages this week delayed flights at some […]

Read More
NBA Commissioner Adam Silver says ‘we’d love to bring a WNBA game’ to China
Business

NBA Commissioner Adam Silver says ‘we’d love to bring a WNBA game’ to China

MACAO — NBA Commissioner Adam Silver said Friday the WNBA could be next to play games in China.  Silver spoke exclusively with CNBC courtside from the first of two NBA games in Macao.  “We have to get through a new collective bargaining agreement with our players,” he said. “But once we do, there’s so much […]

Read More
More than half of entrepreneurs are considering moving to a new country. Singapore is their top option
Business

More than half of entrepreneurs are considering moving to a new country. Singapore is their top option

The Merlion statue in the central business district of Singapore, on Tuesday, July 8, 2025. Lionel Ng | Bloomberg | Getty Images A version of this article first appeared in CNBC’s Inside Wealth newsletter with Robert Frank, a weekly guide to the high-net-worth investor and consumer. Sign up to receive future editions, straight to your inbox. Moneyed […]

Read More