07/08/2025

Southwest Airlines’ CEO Tells Leaders to Embrace Change

The airline’s controversial policy changes are projected to drive sales

Pilots adjust their headings to keep planes on course when the winds change, and businesses need to take the same approach to deal with economic uncertainty, says Southwest Airlines CEO Bob Jordan.

The airline is doing just that by retiring many of its once-iconic business practices, Jordan told The New York Times in its most recent "Corner Office" column. In March, the airline announced an end to its “Bags Fly Free” policy. Passengers are no longer able to choose their own seats. Instead, the airline has created more ticket options in different price tiers, including “budget friendly” options.

These changes are meant generate more revenue—Jordan estimates more than $4 billion in profit—in a time of economic uncertainty due to tariffs and higher costs of living. It’s also an answer to pressure from investors, especially the hedge fund Elliott Investment Management—which accused Southwest of sticking to "antiquated business practices from decades ago" and called for Jordan’s firing last year. The CEO denied Elliott had any influence in the changes.

Please select this link to read the complete article from Inc.