Southwest’s finances may be stumbling right now, but the airline appears convinced its new strategy will deliver a stronger 2026, and its stock market performance suggests many investors agree. I’m not rooting against Southwest, but I remain skeptical that the current optimism will translate into durable success once the real changes finally hit.
That is the tension here. On one hand, the market loves a turnaround story, and Southwest is selling one. On the other hand, much of the carrier’s “historic business model” is not actually fully unraveled yet. The most important phase of the transformation takes effect next year, which means the toughest test of whether this strategy works is still ahead.
Southwest’s leadership is clearly signaling that 2026 will be different. The airline is talking about efficiency, margin improvement, and a more modern revenue approach. CEO Bob Jordan says:
A great solo travel tip spotted this week on Live and Let's Fly.
