Southwest Airlines Announces Major Overhaul Amid Investor Pressure and Service Cuts
Southwest Airlines is set to undergo significant changes, including the introduction of assigned seating and extra legroom, starting in 2025, with a full rollout expected by 2026. The airline plans to cut flights from Atlanta by one-third, citing financial losses, while simultaneously adding new routes to Nashville and Orlando. This move has sparked discontent among unions and employees, as the company faces challenges in restoring profitability. Southwest's CEO recently dismissed criticisms from activist investors as 'inane,' but the airline is now under pressure to enhance its service model and improve its financial standing, leading to a $2.5 billion stock buyback announcement. As Southwest shifts from its traditional open seating arrangement, the implications for frequent flyers are still becoming clear, while employees brace for 'difficult decisions' regarding potential job cuts.
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