Southwest Airlines(US:LUV) New York Post·2025-09-11 19:54Core Viewpoint - Southwest Airlines is focusing on long-haul international flights and premium airport lounges as part of its turnaround strategy to enhance its business model and appeal to high-spending travelers [1][10]. Group 1: Business Strategy - The company is considering using narrow-body aircraft initially for long-haul international routes before transitioning to wide-body aircraft [1]. - Southwest Airlines has begun charging for checked bags and introduced a new basic-economy fare, along with plans to implement a new assigned seat policy in January [4]. - The airline aims to regain its competitive edge by serving long-haul international routes directly, rather than relying solely on partnerships with foreign carriers [6]. Group 2: Market Position and Challenges - The airline has struggled to regain profitability since the COVID-19 pandemic, with its margins significantly lower than competitors like Delta and United Airlines [8]. - Southwest's lack of long-haul international flights has limited its appeal and deprived it of high-margin revenue streams, prompting the need for a business model revamp [5][8]. - The company has launched partnerships with foreign carriers such as Icelandair, China Airlines, and EVA Air to expand its network [5][8]. Group 3: Customer Engagement and Revenue - The introduction of premium airport lounges is expected to enhance customer loyalty and make co-branded credit cards more attractive [11]. - The company recognizes the need to meet customer demands to maintain relevance as the largest domestic carrier, especially in light of competition from airlines that offer more international destinations [10][11].