Southwest Airlines(US:LUV) Youtube·2025-12-10 15:30Core Viewpoint - Southwest Airlines is undergoing a significant transformation in its business model and product offerings while maintaining its core strengths, aiming for a more differentiated customer experience [2][3][4]. Company Initiatives - The company has introduced several new initiatives, including assigned seating, extra legroom, and free Wi-Fi for members, marking a substantial evolution in its service model [2][3]. - Southwest Airlines has added new products like Pete's Coffee and enhanced its online presence, allowing customers to book flights through platforms like Expedia and Google Flight Search [5]. Customer Experience and Market Position - The airline maintains a competitive edge with a domestic network that is considered the best in the industry, along with strong brand loyalty and a cost structure that is 20% lower than legacy carriers [4]. - Despite introducing baggage fees, the airline has seen no significant loss of customers, as evidenced by its stock reaching an all-time high of $38.90 [6]. Performance Metrics - The introduction of unbundled products has allowed customers to choose between basic and premium offerings, leading to a rebound in net promoter scores (NPS) [7]. - Aircraft retrofitted with extra legroom have shown significantly higher NPS, indicating positive customer reception to the changes [7].