Southwest Airlines said its sweeping product overhaul is generating strong early results, with demand for new seating and ancillary products supporting revenue growth and helping offset higher fuel costs.
Speaking at the JPMorgan Industrials Conference, chief executive Robert Jordan said the carrier’s 2025 transformation programme remains “fully on track” and that customers are responding well to new products and distribution changes.
“We’re seeing strong proof point that the initiatives are working,” Jordan said. “Customers are buying the products. They want the new products that we are selling.”
Southwest did not issue a new filing ahead of the conference and said its earnings per share guidance from January remains unchanged. Jordan added that, based on current fuel curves, the airline still expects significant margin expansion and earnings growth in 2026.
The carrier said demand strength is broad-based across geographies, fare classes, business and leisure travel, but stressed that some revenue drivers are unique to Southwest. Jordan pointed to expected annual contributions of $1 billion from bag fees and more than $1 billion from assigned seating upsell and seat ancillaries.
Southwest also said corporate demand is improving. Chief operating officer Andrew Watterson said March was on track to become the biggest corporate travel month in the airline’s history.