As airlines across the industry expand their fare structures, Southwest Airlines (LUV) is taking a unique approach to its transformation strategy. CEO Bob Jordan joins Morning Brief to explain how the company's plans prioritize customer preferences and needs.
Jordan emphasizes that Southwest's evolution is driven by customer demand. He points to services like assigned seating and premium features like extra legroom, things passengers are willing to pay for. Jordan also points to upcoming initiatives, including Getaways by Southwest and strategic mergers, that he expects will boost profit margins.
“It's not a cost for things like bags. It's revenue that comes because our customers want to pay for these new services. So it's really a win-win situation,” Jordan explained to Yahoo Finance.
Commenting on the airline's current transformation efforts, Jordan acknowledges that Southwest is “changing very fundamental things,” including the boarding process. However, he emphasizes that these changes aim to strengthen the Southwest brand and better meet the evolving preferences of its customers.
“Again, I keep coming back to the most important thing you need to do: understand your customer. Understand your customer five and 10 years from now and meet their needs,” he tells Yahoo Finance.
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This post was written by Angel Smith
