Loyalists may miss the old Southwest. Wall Street loves the new one.
Summary
Southwest is abandoning parts of the low-cost model that built its loyal customer base, including open seating and some fee-free policies, as it adopts more revenue-focused practices. Investors appear to welcome the shift as the airline tries to improve profitability and compete more directly with legacy carriers.
Southwest is prioritizing yield and investor returns over the operating model that once defined its
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Southwest is testing whether a more profitable airline can preserve the customer trust built on being different.