Southwest made a whole lot of loyal passengers livid when the airline announced a slew of changes that would take place in 2025 and 2026.
- Two free checked bags were going away
- Seating would become assigned (usually for a price)
- New fare bundles (Basic, Choice, Choice Preferred and Choice Extra) would be introduced
- Flight credits for flights booked or changed would have an expiration date
- Their Rapid Rewards structure was altered, with a reduced number of points per dollar spent
- Cabins of the airline’s 737-7, 737-8, 737-700, 737-800 were getting a refresh, with thinner seats in economy, along with “Premium” seats in the front of the plane (on the 737-800s, this would result in 1″ less pitch in economy)
Granted, there were a couple of more positive things:
- The airline would introduce redeye flights
- They were hoping to get permission to fly to more international locations
- The perceived “cheating” to get onto the plane earlier would disappear with the lack of open seating
But for longtime fans of the airline that was purposefully different, it seemed to be the end of an era. In fact, an informal survey over the summer suggested that 2 out of 3 loyal Southwest customers were now looking to book on other airlines.
The joke’s on us
As it turns out, so far all these changes are causing Southwest to go in the direction all its new Board Members and stockholders wanted. Last week, Southwest Airlines reported a net income of $54 million for the third quarter of 2025, delivering a “profitable quarter” and performing “better-than-anticipated”.
In its financial report released on October 22, 2025, Southwest noted that its Q3 unit revenues, costs, and net income all “exceeded its expectations”.
The airline said it saw a “significant increase in demand” that started this past July, which continued throughout Q3 2025. According to Southwest, this rise in demand “drove record third quarter revenue performance”.
“We continue to make substantial progress as we execute the most significant transformation in Southwest Airlines’ history,” said Bob Jordan, CEO of the airline. “We quickly implemented many new product attributes and enhancements, and the results are showing.”
The airline said it anticipates achieving an “all-time quarterly record operating revenues” in the fourth quarter of 2025.
It’s working
So yeah… all those changes are apparently working in Southwest’s favor—they’re making more money.
Unfortunately, a good portion of Southwest’s goals are not necessarily in sync with its passengers’ goals. THEY were undeniably upset about losing 2 free bags, flight credits that didn’t expire, and the list goes on and on.
But hey, with Southwest pretty much like any other airline now, it’s easier to consider other airlines.
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5 comments
As an A-List Preferred customer, I’m enjoying/will enjoy the changes. I can buy Basic fares but I still get any seat I want upon making the reservation; two bags are free; I won’t have to watch X number of suspicious pre-boarders take the seats I may like; and I’m with early A Group/soon to be Group 1 during boarding.
On the negative side – yeah, have to watch those credits so they don’t expire; it’s NOT good for passengers who don’t have status; and I suspect the luggage circus will delay flights in the future.
I fly other airlines also, but SWA currently has routes I need from my home airport so I’ll be flying them quite a bit in the foreseeable future.
Depends on your situation, I guess……
Of course, if you now charge for things you used to give away for free, you’re going to have more revenue.
@Bob – That depends. If less people fly Southwest because there previous advantages are gone then I don’t see a lot of benefit and Southwest needs to find replacements for the loyal customers they’ve alienated. This may or may not work out better in the long run but I’m dubious that everything is suddenly coming up roses.
Give it time.
Give it time.
Much too early to plan the wake.
Possibly time to start sketching out the “Remember when SWA .. ” articles.
I think Southwest painted the rosier picture than it actually was with their reports. If not, why would they have so many promotions after the changes went into effect.