-Southwest Airlines announced sweeping changes on Thursday, including plans to end open seating that has been the hallmark of its brand for decades as it faces investor pressure to improve results and shore up its share price.), which have hit revenue and worsened cost pressures. Southwest is also facing pricing pressure as an industry-wide overcapacity in the domestic market has dampened airfares.
Southwest currently doesn't offer these products, but said on Thursday that it now plans on offering seats with extra legroom on its airplanes. U.S. carriers have been reporting strong demand for high-margin premium cabins. Alaska Airlines last week said it would add 1.3 million premium seats annually to its mainline fleet.
Jordan said the company currently has no plans to start charging for bags, adding the airline's data shows that a no-bag fee policy is the number one reason customers choose it. TD Cowen analyst Thomas Fitzgerald said Southwest's outlook implies losses in the current quarter and breakeven in the fourth quarter.