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 Southwest AirlinesBoeing 737 MAX 8 | |||||||
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| Founded | March 9, 1967; 58 years ago (1967-03-09) (asAir Southwest) | ||||||
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| Commenced operations | June 18, 1971; 54 years ago (1971-06-18) (asSouthwest Airlines) | ||||||
| AOC # | SWAA304A | ||||||
| Operating bases | |||||||
| Frequent-flyer program | Rapid Rewards | ||||||
| Fleet size | 810[2] | ||||||
| Destinations | 117[3]: 3 | ||||||
| Traded as | |||||||
| Headquarters | Love Field,Dallas, Texas, U.S. | ||||||
| Key people |
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| Founders | |||||||
| Revenue |  US$28.1 billion (2025)[3] | ||||||
| Operating income | US$428 million (2025)[3] | ||||||
| Net income |  US$441 million (2025)[3] | ||||||
| Total assets | US$29.1 billion (2025)[3] | ||||||
| Total equity | US$7.98 billion (2025)[3] | ||||||
| Employees | 72,790 (2025)[3] | ||||||
| Website | southwest | ||||||
Southwest Airlines (or simplySouthwest) is a majorlow-cost airline of the United States.[4] It is headquartered in theLove Field neighborhood ofDallas, Texas. It is thefourth-largest airline in North America when measured by passengers carried, as of 2024. With its all-Boeing 737 fleet, Southwest serves over 100 destinations in 42 states,Washington, D.C.,Puerto Rico, and ten other countries and territories near the southern United States in theGulf of Mexico andCaribbean Sea regions:Aruba,the Bahamas,Belize, theCayman Islands,Costa Rica,Cuba, theDominican Republic,Mexico,Jamaica, andTurks and Caicos.
The airline was established on March 9, 1967, byHerb Kelleher andRollin King asAir Southwest Co. and adopted its current name, Southwest Airlines Co., in 1971, when it began operating as anintrastate airline wholly within the state of Texas, first flying between Dallas,Houston, andSan Antonio. It began regional interstate service in 1979, expanding nationwide in the following decades.
Southwest Airlines was founded in 1966 byHerbert Kelleher andRollin King, and incorporated as Air Southwest Co. in 1967. The company planned to operate as anintrastate airline, flying aTexas Triangle network betweenDallas,Houston, andSan Antonio. By flying only within the state ofTexas Southwest would be exempt from regulation by the federalCivil Aeronautics Board, allowing it to undercut the prices of competitors. Three other airlines (Braniff,Trans-Texas, andContinental) sued to prevent the company from starting up. The lawsuits were resolved in 1970, and in 1971 the airline changed its name to Southwest Airlines. In 1975, Southwest began flying to other cities in Texas, and in 1979, after passage of theAirline Deregulation Act, it began flying to adjacent states. It started service to the East and the Southeast in the 1990s, andDenver in 2006, which is now its most popular destination. Southwest Airlines was profitable for 47 consecutive fiscal years, from 1973 through 2019.
Southwest Airlines encountered significant operational and financial difficulties in the 2020s, notably during theholiday meltdown in 2022 when it canceled over 15,000 flights. This event, caused by severe weather and outdated scheduling systems, led to a record $140 million fine from the U.S. Department of Transportation, and losses exceeding $1.1 billion.Elliott Investment Management, anactivist hedge fund, capitalized on Southwest's vulnerabilities by acquiring more than 10% of the company's shares, advocating for leadership and operational changes to improve profitability.[5] A settlement between Southwest and Elliott in October 2024 resulted in former CEOGary Kelly stepping down asexecutive chairman and five Elliott-backed directors joining the board;[6] however, CEOBob Jordan remained despite Elliot's efforts to oust him.[7] Under new oversight, Southwest initiated major changes, including its first-ever layoffs affecting approximately 15% of employees,[8] ending its popular two freechecked bags policy on May 28, 2025, transitioning toassigned seating beginning in 2026, introducing premium seating and basic fare options, addingred-eye flights, limiting flight credit validity to one year,[9][10] listing flights on third-party platforms likeExpedia andGoogle Flights,[11] and establishing acodeshare partnership withIcelandair.[12]
Southwest uses apoint-to-point system combined with arolling-hub model in its base cities, in contrast to thehub-and-spoke system of other major airlines. As of January 2024[update], Southwest Airlines flew to over 100 destinations in 42 states,Puerto Rico,Mexico,Central America, and theCaribbean.[13] This system means that the airline has no real hubs, but rather some airports with more destinations than others.
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Southwest currently hasinterline agreements withIcelandair,[14]China Airlines,[15]EVA Air,[16]Philippine Airlines,[17]Condor,[18] andTurkish Airlines.[19]
As of June 2025[update],Southwest Airlines operates an all-Boeing 737 fleet with 810[20] aircraft, making it the fifth largest commercialairline fleet in the world and the largest 737 operator. Additionally, as of November 2025, Southwest has over 500Boeing 737 MAX aircraft on order.[21] Southwest has only ever operated Boeing 737 aircraft, except for a brief period during the late 1970s and early 1980s, when they operated 6Boeing 727-200 aircraft. The airline served as the launch customer of the737-300,737-500, and737-700. The use of a single aircraft type across its fleet allows Southwest's pilots and flight attendants to operate any aircraft without restrictions and reduces training time and costs. Southwest Airlines aims to be all MAX-operators of the 737 by 2031.[22]
Southwest Airlines solely offers economy class seating and does not have business class or first class cabins on its aircraft.[23]
Southwest offers free snacks and non-alcoholic beverages inflight and offers alcoholic beverages for sale for $7–9 per beverage.[24] Free alcoholic drinks are offered to passengers on some holidays such asValentine's Day andHalloween. Southwest has become known for colorful boarding announcements and crews who sometimes burst out in song.[25][26][27][28]
Southwest had an open seating policy, which ended on January 26, 2026,[29] and used a unique boarding process. Passengers were given a group letter (A, B or C) and a number (1 through 60). Passengers lined up in numerical order within each letter group and chose any open seat on the aircraft.[30] A 2012 study on the television seriesMythBusters, found this to be the fastest method currently in use for passengers to board a plane; on average, it is 10 minutes faster than the standard method.[31] The revised system which began in January 2026 allows assigned seating; at boarding time passengers are given a group number from 1 to 8, based on their seat location.[29]
Southwest has a "customer of size" policy in which the cost of a second seat is not refunded for anyplus-sized travelers who take up more room than one seat.[32][33]
On May 1, 2025, Southwest introduced the first aircraft with new extra-legroom seating as part of a phased update to its cabin layout. These seats will be installed in the first five rows and near exit doors on retrofitted Boeing 737-800 and MAX 8 aircraft. During the initial rollout, the seats will be available at no additional cost as the airline continues to operate under an open seating policy. The airline plans to complete these upgrades before operating flights with assigned seats on January 27, 2026.[34]
As of December 2024, Southwest offers free streaming of live television, movies, music, in-app messaging (iMessage and WhatsApp), and real-time flight tracking.[35] Full Internet access is available for an $8 fee for most passengers but is free for Business Select and A-List Preferred passengers. As of March 9, 2023, Southwest began upgrading Wi-Fi hardware on its existing aircraft equipped with Anuvu Wi-Fi and began rolling out Viasat Wi-Fi on all new deliveries.[36]
Southwest first began to offer afrequent-flyer program on June 18, 1987, calling itThe Company Club. The program credited for trips flown regardless of distance.[37] Southwest Airlines renamed its frequent-flyer programRapid Rewards on April 25, 1996.[38]
The original Rapid Rewards program offered one credit per one-way flight from an origin to a destination, including any stops or connections on Southwest Airlines. When 16 credits were accumulated in a 24-month period, Southwest awarded one free round-trip ticket that was valid for 12 months.[39]
On March 1, 2011, Rapid Rewards changed to a points system based on ticket cost. Members earn and redeem points based on a four-tier fare scale multiplier and the cost of the ticket. Changes also included noblackout dates, seat restrictions, or expiring credits. Since October 18, 2019, Rapid Rewards points do not expire as long as the member is alive.[40] It also adds more options to use points.[41][42][43][44]
The key trends for Southwest Airlines are (as of the end of the calendar year):[45]
| Year | Net income (in million US$) | Employees (FTE) | Passengers (in millions) | Load factor (%) | Avg. fare (US$) | Aircraft[a] | Ref. |
|---|---|---|---|---|---|---|---|
| 2015 | 2,181 | 49,583 | 118 | 83.6 | 154 | 704 | [46] |
| 2016 | 2,183 | 53,536 | 124 | 84.0 | 152 | 723 | [46] |
| 2017 | 3,357 | 56,110 | 130 | 83.9 | 151 | 706 | [46] |
| 2018 | 2,465 | 58,803 | 134 | 83.4 | 151 | 750 | [46] |
| 2019 | 2,700 | 60,767 | 134 | 83.5 | 154 | 770 | [47] |
| 2020 | −3,074 | 56,537 | 54 | 52.4 | 141 | 718 | [48] |
| 2021 | 977 | 55,093 | 99 | 78.5 | 141 | 728 | [47] |
| 2022 | 539 | 66,656 | 126 | 83.4 | 169 | 770 | [47] |
| 2023 | 465 | 74,806 | 137 | 80.0 | 172 | 817 | [49] |
| 2024 | 465 | 72,450 | 140 | 80.4 | 178 | 803 | [50] |
| 2025 | 441 | 72,790 | 134 | 77.4 | 190 | 803 | [3] |
The Southwest Airlines headquarters are located on the grounds ofDallas Love Field inDallas.[51][52]
On September 17, 2012, Southwest broke ground on a new Training and Operational Support building,[53] across the street from its current headquarters building.
On June 2, 2016, Southwest broke ground on its new office and training facility known as Wings. The newest addition to the corporate campus is composed of a 420,000-square-foot, six-story office building, and a 380,000-square-foot adjoining structure called the Leadership Education and Aircrew Development (LEAD) Center that serves as the new pilot training facility. The LEAD Center has the capacity to house and support 18 flight simulators. It is designed to be expanded to accommodate up to 26 simulator bays. The building opened on April 3, 2018.[54]
On August 16, 2019, Southwest announced an expansion of the LEAD Center to accommodate eight additional simulators for future operational and training demands.[55] On January 2, 2020, it was announced that Southwest would be purchasing an additional 3 acres (1.2 ha) of land adjacent to its Wings and LEAD facilities.[56] No additional details were disclosed.
As of January 30, 2025[update], Southwest Airlines had 72,450 active full-time equivalent employees.[57] According toThe Washington Post, it uses the hiring motto of seeking people that have a "Servant's Heart, Warrior Spirit, Fun-LUVing Attitude".[58] It also uses the internal practice of ranking "employees first, customers second".[59] Southwest Airlines pilots are represented by the Southwest Airlines Pilot Association union.[60]
Bob Jordan became Southwest's sixth CEO on February 1, 2022, replacingGary C. Kelly. Kelly continues as chairman of Southwest Airlines. Kelly replaced Jim Parker on July 15, 2004, and assumed the title ofpresident on July 15, 2008, replacing former presidentColleen Barrett.[61]
In September 2024, in response to pressure from Elliott Investment Management, Kelly announced that he would not seek reelection as executive chairman in 2025. Jordan is expected to remain as CEO.[62][63] On October 24, 2024, Kelly announced he would accelerate his retirement, which – along with the previously announced retirements of six other Southwest directors – would go into effect on November 1, 2024.[64]Rakesh Gangwal was announced as independent chair of the board of directors three days later. Gangwal stepped down as chair on August 1, 2025, and Doug Brooks was announced as the new independent chair of the board.[65]
About 83% of Southwest employees aremembers of a union.[66] The Southwest Airline Pilots' Association, a union not affiliated with theAir Line Pilots Association, represents the airline's pilots.[67] The aircraft maintenance technicians are represented by theAircraft Mechanics Fraternal Association.[68] Customer service agents and reservation agents are represented by the International Association of Machinists and Aerospace Workers Union. Flight dispatchers, flight attendants, ramp agents, and operations agents are represented by the Transport Workers Union.
The company has appeared on various "best places to work" list, with its employee culture mentioned byTravel and Leisure,CNBC, andForbes.[69][70] The company has also been named toFortune magazine's "Most Admired Companies" list, reaching number 14 in 2021.[71]
Southwest has never furloughed an employee.[72] As a result of theCOVID-19 pandemic, the company launched voluntary separation and extended time-off programs in 2020, and around 16,900 employees volunteered to take anearly retirement orlong-term leave.[73] Roughly 24% were pilots and 33% were flight attendants.[74] In late 2020, the airline issued someWARN Act notices and announced incipient pay cuts for many employees in response to pandemic impacts, but these measures were rescinded after theConsolidated Appropriations Act, 2021 was enacted on December 27, 2020, providing additional financial aid to US airlines.[75]
The latest five-year labor contract for Southwest Airlines pilots was approved in January 2024.[76]
Following a board takeover in February 2025[77] Southwest laid off 1750 of its non-contract staff, approximately 15% of its corporate workforce.[78]
Southwest and its business model have had an influence on other low-cost carriers (LCCs). The competitive strategy combines a high level of employee and aircraft productivity with low unit costs by reducing aircraft turnaround time, particularly at the gate.[79] Europe'sEasyJet andRyanair are two of the best-known airlines to follow Southwest's business strategy in that continent. Other airlines with a business model based on Southwest's system include Canada'sWestJet,Malaysia'sAirAsia (the first and biggest LCC inAsia), India'sIndiGo, Australia'sJetstar, a subsidiary ofQantas (although Jetstar now operates three aircraft types),Philippines'Cebu Pacific,Thailand'sNok Air,Mexico'sVolaris,Indonesia'sLion Air andTurkey'sPegasus Airlines.[79]
In the early 1990s, Southwest Airlines actively opposed proposals to develop high-speed rail in Texas, viewing the project as a competitor to its short-haul flights. The proposed rail system would have connected Dallas, San Antonio, and Houston. Southwest lobbied both the United States Congress and the Texas Legislature, and filed multiple lawsuits aimed at halting the initiative.[80][81][82][83] In a 1991 statement to Texas officials, the airline argued that high-speed rail would only be feasible if it displaced existing airline services and received substantial public subsidies.[80] The project was cancelled in 1994[81] with many observers citing Southwest’s lobbying efforts as a significant factor in its failure.[83]
The company has always employed humor in its advertising. Former slogans include "Love Is Still Our Field", "Just Plane Smart", "The Somebody Else Up There Who Loves You", "You're Now Free to Move About the Country", "THE Low Fare Airline", "Grab your bag, It's On!", and "Welcome Aboard". The airline's slogan (as of 2022) is "Low fares. Nothing to hide. That's TransFarency!"[84]
In March 1992, shortly after Southwest started using the "Just Plane Smart" motto,Stevens Aviation, which had been using "Plane Smart" for its motto, advised Southwest that it was infringing on its trademark.[85][86] Instead of a lawsuit, the CEOs for both companies staged an arm-wrestling match, dubbed as "Malice in Dallas". It was held at the now-demolishedDallas Sportatorium and set for two out of three rounds, the loser of each round was to pay $5,000 to the charity of his choice, with the winner gaining the use of the trademarked phrase. A promotional video was created showing the CEOs "training" for the bout (with CEO Herb Kelleher being helped up during a sit-up where a cigarette and glass ofWild Turkey 101 whiskey was waiting) and distributed among the employees and also as a video press release along with the video of the match itself. Herb Kelleher lost the match for Southwest, with Stevens Aviation winning the rights to the phrase. Kurt Herwald, CEO of Stevens Aviation, immediately granted the use of "Just Plane Smart" to Southwest Airlines. The net result was both companies having use of the trademark.[87]
Southwest Airlines has been involved in 11 accidents, including three aircrafthull losses and four fatalities: one accidental passenger death in flight, two non-passenger deaths on the ground, and one passenger who died from injuries sustained after being restrained by others while attempting to enter the cockpit. No passenger has died as a result of a crash.[88]
In October 2019, a Southwest flight attendant filed a lawsuit against the airline, claiming that two pilots had livestreamed footage from a camera hidden in the plane's toilet to aniPad, and that one of the pilots said that such cameras were a "top-secret security measure" installed in all of the airline's737-800 aircraft.[93] Southwest and the pilot union stated that the film was a hoax and a "poor attempt at humor" by one of the pilots, who had previously recorded himself on a different aircraft, fully clothed.[94]
In February 2020, a report conducted by the DOT inspector general found that Southwest was flying airplanes with safety concerns and that theFederal Aviation Administration was failing to properly oversee the airline.[95]
Citing fourwhistleblowers, federal investigators with theUS Office of Special Counsel released a report on July 27, 2022, that follows up on the 2020 DOT inspector general's report. The 2022 report claims that Southwest stonewalledFederal Aviation Administration (FAA) investigations into maintenance and piloting safety lapses, and criticized the FAA for failing to adequately oversee the airline, stating that senior FAA staff "mismanaged and interfered" with investigations "in the face of SWA's intimidation tactics". The report accuses Southwest of misusing the FAA'sAviation Safety Action Program (ASAP) to hide pilot errors, while accusing the FAA of failing to adequately oversee Southwest's mechanics, and of failing to adequately vet maintenance records provided by the airline for forty-nine737 aircraft purchased from foreign carriers whose documentation practices did not meet FAA standards.[96]
The airline experienced severe delays and thousands of flight cancellations starting on December 21, 2022, and continuing through the Christmas holiday.[97][98][99] While many cancellations were due to bad weather from the severelate December winter storm across much of the United States, industry experts and SWAPA also blamed inadequate staffing and the airline's "outdated" employee scheduling system, citing reports of pilots waiting on hold on the telephone for up to eight hours awaiting work assignments.[100][101] On December 26, the airline initiated a massive system "reset", preemptively canceling thousands of flights and halting ticket sales over concerns that travelers might buy tickets for flights that were subsequently canceled.[101]
In December 2023, the airline reached a settlement with theUnited States Department of Transportation for a record-breaking $140 million fine, exceeding the previous record by a factor of roughly 30. The financial impact from the crisis exceeded $1.1 billion in losses.[97][98][99][102][103] The settlement included a $35 million fine payable directly to the federal government. However, USDOT waived the final $11 million payment of the fine.[104]
...Southwest introduces "The Company Club," a frequent-flyer program based on total trips flown, regardless of distance...
"Rapid Rewards" officially takes the place of the "Company Club" as the new name for our frequent flier program.
One credit will be given for each Southwest Airlines flight flown.
...Rapid Rewards program, the carrier's frequent flyer program...
Lower fares require fewer points.
The investigation confirmed that senior leadership at the Federal Aviation Administration 'mismanaged and interfered' with the arm overseeing Southwest Airlines between 2018 and 2020 'in the face of SWA's intimidation tactics.'
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