Southwest Airlines

Southwest Airlines was founded in 1966 by Herbert Kelleher and Rollin King, and incorporated as Air Southwest Co. in 1967. The company planned to operate as an intrastate airline, flying a Texas Triangle network between Dallas, Houston, and San Antonio. By flying only within the state of Texas Southwest would be exempt from regulation by the federal Civil Aeronautics Board, allowing it to undercut the prices of competitors. Three other airlines (Braniff, Trans-Texas, and Continental) 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 the Airline Deregulation Act, it began flying to adjacent states. It started service to the East and the Southeast in the 1990s, and Denver 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 the holiday 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 This event, caused by severe weather and outdated scheduling systems, led to a record $140 million fine from the U.S. Department of Transportation, and losses exceeding $1.1 billion.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, an activist 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. A settlement between Southwest and Elliott in October 2024 resulted in former CEO Gary Kelly stepping down as executive chairman and five Elliott-backed directors joining the board; however, CEO Bob Jordan remained despite Elliot's efforts to oust him. Under new oversight, Southwest initiated major changes, including its first-ever layoffs affecting approximately 15% of employees, ending its popular two free checked bags policy on May 28, 2025, transitioning to assigned seating beginning in 2026, introducing premium seating and basic fare options, adding red-eye flights, limiting flight credit validity to one year, listing flights on third-party platforms like Expedia and Google Flights, and establishing a codeshare partnership with Icelandair.

Southwest uses a point-to-point system combined with a rolling-hub model in its base cities, in contrast to the hub-and-spoke system of other major airlines. As of June 2026, Southwest Airlines flew to over 100 destinations in 43 states, Puerto Rico, Mexico, Central America, and the Caribbean. This system means that the airline has no real hubs, but rather some airports with more destinations than others.

Southwest currently has interline agreements with the following airlines:

As of June 2026, Southwest Airlines operates an all-Boeing 737 fleet with 803 aircraft, making it the fifth largest commercial airline fleet in the world and the largest 737 operator. Additionally, Southwest has over 400 Boeing 737 MAX aircraft on order. Southwest has only ever operated Boeing 737 aircraft, except for a brief period during the late 1970s and early 1980s, when they operated six Boeing 727-200 aircraft. The airline served as the launch customer of the 737-300, 737-500, 737-700, 737 MAX 7, and 737 MAX 8. The use of a single aircraft type across its fleet allows Southwest's pilots to operate any aircraft without restrictions, allows the company to stock fewer spare parts, and reduces training time and costs. Southwest Airlines aims to be an all 737 MAX-operator by 2031.

Southwest Airlines offers a single-class cabin with economy and extended legroom seating and does not operate separate business or first-class cabins.

The airline provides complimentary light snacks and non-alcoholic beverages on all flights, with alcoholic drinks available for purchase. Complimentary alcoholic beverages are offered on select holidays, including Valentine's Day, St. Patrick's Day, the airline's June 18 anniversary, and Halloween. Southwest does not sell full meals on board.

The airline has become known for informal and sometimes humorous onboard announcements.

Until January 26, 2026, Southwest used an open seating policy in which passengers were assigned a boarding group (A, B, or C) and a number, and selected any available seat upon boarding. A 2012 episode of MythBusters found the process to be faster on average than conventional boarding methods. Assigned seating was introduced beginning January 27, 2026, with passengers grouped by seat location at boarding. Beginning in May 2025, the airline introduced extra-legroom seating in the first rows and at exit doors on Boeing 737-800 and 737 MAX 8 aircraft as part of a phased cabin update.

Southwest maintains a "customer of size" policy under which passengers requiring additional space may purchase a second seat.

Southwest provides complimentary Wi-Fi access to members of its Rapid Rewards program. After connecting, passengers can access the onboard entertainment portal on their personal devices, which includes a flight tracker, on-demand movies, and live television. Beginning in summer 2026, the airline plans to deploy Starlink satellite-based high-speed internet across its fleet.

Southwest introduced a frequent-flyer program, The Company Club, on June 18, 1987, awarding credits based on trips flown rather than distance. The program was renamed Rapid Rewards in 1996. Under the original structure, members earned one credit per one-way flight; 16 credits within 24 months qualified for a free round-trip ticket valid for one year.

On March 1, 2011, Rapid Rewards transitioned to a revenue-based points system in which members earn and redeem points according to ticket price and fare type. The revision eliminated blackout dates and seat restrictions. Since October 18, 2019, points do not expire provided the member remains active.

The key trends for Southwest Airlines are (as of the end of the calendar year):

The Southwest Airlines headquarters are located on the grounds of Dallas Love Field in Dallas.

On September 17, 2012, Southwest broke ground on a new Training and Operational Support building, 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.

On August 16, 2019, Southwest announced an expansion of the LEAD Center to accommodate eight additional simulators for future operational and training demands. 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. No additional details were disclosed.

As of January 30, 2025, Southwest Airlines had 72,450 active full-time equivalent employees. According to The Washington Post, it uses the hiring motto of seeking people that have a "Servant's Heart, Warrior Spirit, Fun-LUVing Attitude". It also uses the internal practice of ranking "employees first, customers second". Southwest Airlines pilots are represented by the Southwest Airlines Pilot Association union.

Bob Jordan became Southwest's sixth CEO on February 1, 2022, replacing Gary C. Kelly. Kelly continues as chairman of Southwest Airlines. Kelly replaced Jim Parker on July 15, 2004, and assumed the title of president on July 15, 2008, replacing former president Colleen Barrett.

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. 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. …