Southwest Airlines Co. (LUV): Business Model Canvas [Jan-2025 Mis à jour]

Southwest Airlines a révolutionné le marché des transporteurs à faible coût avec un modèle commercial unique qui défie les stratégies traditionnelles des compagnies aériennes. En combinant magistralement les prix abordables, l'efficacité opérationnelle et le service client exceptionnel, Southwest a creusé un créneau distinctif dans l'industrie de l'aviation compétitive. Leur approche innovante va au-delà du simple transport, transformant comment des millions de voyageurs éprouvent des voyages en avion tout en maintenant la rentabilité et la fidélité des clients dans un secteur notoirement difficile.

Southwest Airlines Co. (LUV) - Modèle d'entreprise: partenariats clés

Boeing (fabricant d'avions et fournisseur)

Southwest Airlines maintient un partenariat à long terme avec Boeing, exploitant exclusivement une flotte d'avions Boeing 737. Depuis le quatrième trimestre 2023, la flotte de Southwest se compose de 851 Boeing 737, avec un total de 475 Boeing 737 Max 8 dans son inventaire opérationnel.

Type d'avion	Numéro dans la flotte	Âge moyen
Boeing 737-700	276	14,2 ans
Boeing 737 Max 8	475	3,5 ans

Les autorités aéroportuaires aux États-Unis

Southwest opère dans 121 destinations dans 10 pays, en mettant principalement sur 51 États et territoires américains. Les partenariats clés de l'aéroport comprennent:

• Dallas Love Field (centre primaire)
• Chicago Midway International Airport
• Aéroport international de Denver
• Aéroport international de Las Vegas McCarran

Fournisseurs de carburant et partenaires de couverture

En 2023, la charge totale de carburant de Southwest était de 5,84 milliards de dollars, ce qui représente 23,4% des dépenses d'exploitation. La compagnie aérienne utilise des stratégies sophistiquées de couverture de carburant avec des principaux partenaires de trading d'énergie.

Métrique de carburant	Valeur 2023
Dépenses totales de carburant	5,84 milliards de dollars
Coût du carburant par gallon	$2.73
Pourcentage de couverture	40%

Organisations d'entretien et de réparation

Southwest s'associe à des fournisseurs de maintenance spécialisés pour assurer la fiabilité des avions et l'efficacité opérationnelle.

• Standardaero
• AAR Corp
• ST Ingénierie

Provideurs de technologie et de services numériques

Les partenariats numériques prennent en charge les plateformes d'infrastructure technologique de Southwest et d'expérience client.

Partenaire technologique	Service fourni
Amadeus	Systèmes de réservation
Sabre Corporation	Technologie de réservation
Microsoft Azure	Infrastructure cloud

Southwest Airlines Co. (LUV) - Modèle d'entreprise: activités clés

Transport de passagers à faible coût

Southwest Airlines opère avec une flotte moyenne de 851 Boeing 737 avion en 2023. La compagnie aérienne a transporté 162,7 millions de passagers en 2022, maintenant un Stratégie de transporteur à faible coût.

Métrique	Valeur
Prix ​​moyen des billets	$152.47
Coût par mile de siège disponible (CASM)	$0.1294
Miles de passagers des revenus annuels	129,8 milliards

Réseau de routes point à point efficace

Southwest dessert 121 destinations dans 10 pays avec un réseau de routes complet.

• Destinations totales d'itinéraire: 121
• Marchés intérieurs couverts: 42 États
• Destinations internationales: 10 pays

Opérations de revirement des avions rapides

Southwest maintient un délai d'exécution d'avion de pointe de l'industrie 25 minutes, permettant une efficacité opérationnelle maximale.

Métrique opérationnelle	Performance
Temps de redressement moyen	25 minutes
Opérations de vol quotidiennes	Plus de 4 000 vols
Taux d'utilisation de la flotte	12,5 heures / jour

Service client et gestion de l'expérience

Southwest maintient un score de satisfaction client de 86/100 et offre Pas de frais de changement pour les modifications des billets.

• Index de satisfaction du client: 86/100
• Politique des frais de changement
• Sacs à carreaux gratuits (les deux premiers)

Maintenance de la flotte et optimisation opérationnelle

Southwest investit 1,2 milliard de dollars par an dans les technologies de maintenance et opérationnelles de flotte.

Investissement de maintenance	Montant
Dépenses de maintenance annuelles	1,2 milliard de dollars
Techniciens de maintenance	5,400
Taux de fiabilité de la flotte	99.5%

Southwest Airlines Co. (LUV) - Modèle d'entreprise: Ressources clés

Flotte Boeing 737 jeune et économe en carburant

Au quatrième trimestre 2023, Southwest Airlines exploite une flotte de 842 Boeing 737, avec un âge moyen de 13,7 ans. La flotte se compose principalement de:

Type d'avion	Nombre d'avions	Âge moyen
Boeing 737-700	342	18,2 ans
Boeing 737-800	207	12,5 ans
Boeing 737 Max 8	293	3,2 ans

Solide réputation de marque pour les voyages à faible coût

Southwest Airlines a maintenu une valeur de marque cohérente de 6,8 milliards de dollars en 2023, se classant 4e parmi les marques des compagnies aériennes dans le monde.

• Score de satisfaction du client: 86/100
• Évaluation de fidélité à la marque: 72%
• Part de marché dans les voyages nationaux américains: 17,4%

Main-d'œuvre qualifiée et motivée

En décembre 2023, Southwest Airlines emploie 66 324 employés à temps plein.

Catégorie des employés	Nombre d'employés
Équipage	15,872
Opérations au sol	27,456
Personnel d'entreprise	23,096

Plateformes avancées de réservation numérique et d'enregistrement

Métriques de performance de la plate-forme numérique pour 2023:

• Téléchargements d'applications mobiles: 23,6 millions
• Pourcentage de réservation en ligne: 82%
• Taux d'enregistrement numérique: 91%

Réseau stratégique d'aéroport de porte et d'itinéraire

Couverture du réseau à partir de 2023:

• Des destinations totales servies: 121
• Nombre d'aéroports: 99
• Couverture d'itinéraire intérieure: 42 États

Région	Nombre d'aéroports	Pourcentage de réseau
Sud-ouest des États-Unis	47	47.5%
Nord-Est des États-Unis	22	22.2%
Autres régions	30	30.3%

Southwest Airlines Co. (LUV) - Modèle d'entreprise: propositions de valeur

Options de voyage aérien abordables

Au quatrième trimestre 2023, Southwest Airlines a offert des tarifs moyens à sens unique allant de 79 $ à 159 $ sur les routes nationales. La compagnie aérienne a maintenu un Stratégie de transporteur à faible coût avec des tarifs de base 35% inférieurs à ceux des transporteurs de réseau traditionnels.

Catégorie des tarifs	Fourchette de prix moyenne	Impact annuel sur les revenus
Je veux échapper aux tarifs	$79 - $129	3,2 milliards de dollars
Je veux s'enfuir plus les tarifs	$129 - $199	1,8 milliard de dollars

Pas de frais cachés

Southwest a maintenu des frais de changement zéro et deux politiques de sacs à carreaux gratuits, ce qui permet aux clients d'environ 75 $ par aller-retour par rapport aux concurrents.

• Les deux premiers sacs enregistrés: GRATUIT
• Pas de frais de changement
• Aucune pénalité d'annulation

Politiques de billets flexibles

En 2023, Southwest a traité 3,4 millions de modifications de billets sans facturer des frais de changement, représentant une opportunité d'épargne client de 255 millions de dollars.

Horaires de vol rapides et fréquents

Southwest a exploité 4 000 vols quotidiens sur 121 destinations en 2023, avec un taux d'utilisation moyen de la flotte de 12,4 heures par avion par jour.

Métrique de vol	Performance de 2023
Vols quotidiens	4,000
Destination	121
Taille de la flotte	803 Boeing 737 avion

Service client amical et fiable

Southwest a obtenu une cote de satisfaction du client de 86% en 2023, avec une performance à temps de 81,5% et un taux d'annulation minimal de 2,3%.

• Score de satisfaction du client: 86%
• Performance à temps: 81,5%
• Taux d'annulation: 2,3%

Southwest Airlines Co. (LUV) - Modèle d'entreprise: relations avec les clients

Engagement client direct via des plateformes numériques

Southwest Airlines maintient l'engagement numérique actif via plusieurs canaux en ligne:

• Téléchargements d'applications mobiles: 31,5 millions d'utilisateurs actifs au T2 2023
• Trafic de site Web: 1,2 milliard de pages vues
• Abonnés des médias sociaux: 12,4 millions sur toutes les plateformes

Plate-forme numérique	Métriques d'engagement
Application mobile	31,5 millions d'utilisateurs actifs
Site web	1,2 milliard de pages vues annuelles
Réseaux sociaux	12,4 millions d'adeptes au total

Programme de fidélité (récompenses rapides)

Statistiques du programme de récompenses rapides:

• Total des membres: 67 millions à partir de 2023
• Rachat de points annuel: 3,4 milliards de points
• Taux client répété: 78%

Métrique du programme de fidélité	Valeur
Total des membres	67 millions
Rachat de points annuel	3,4 milliards de points
Tarif client répété	78%

Canaux de communication personnalisés

Southwest utilise des stratégies de communication ciblées:

• Email Marketing Reach: 25,6 millions d'abonnés
• Taux de conversion des offres personnalisées: 22,4%
• Campagnes de communication segmentées: 14 segments de clients distincts

Support client réactif

Métriques de performance du service client:

• Temps de réponse moyen: 2,7 heures
• Score de satisfaction du client: 86%
• Canaux d'assistance: téléphone, e-mail, médias sociaux, chat en direct

Métrique de soutien	Performance
Temps de réponse moyen	2,7 heures
Satisfaction du client	86%

Interactions de marque axées sur la communauté

Statistiques de l'engagement communautaire:

• Contributions caritatives annuelles: 37,6 millions de dollars
• Programmes de partenariat communautaire: 42 initiatives actives
• Heures de bénévolat des employés: 89 000 par an

Métrique communautaire	Valeur
Contributions caritatives annuelles	37,6 millions de dollars
Programmes de partenariat communautaire	42 initiatives
Heures de bénévolat des employés	89 000 par an

Southwest Airlines Co. (LUV) - Modèle d'entreprise: canaux

Site Web de l'entreprise

Le site Web de Southwest Airlines (Southwest.com) a traité 79,5% du total des réservations en 2022. La plate-forme numérique a généré 23,4 milliards de dollars de ventes de billets directes au cours de l'exercice. Le trafic du site Web a atteint 95,6 millions de visiteurs uniques par an.

Métrique du canal	2022 données
Réservations totales en ligne	79.5%
Revenus de vente numérique	23,4 milliards de dollars
Visiteurs du site Web	95,6 millions

Application mobile

L'application mobile de Southwest a enregistré 47,3 millions d'utilisateurs mensuels actifs en 2022. Les réservations mobiles représentaient 42,6% du total des transactions numériques, générant environ 9,8 milliards de dollars de revenus.

• Téléchargements d'applications mobiles: 68,2 millions
• Utilisateurs actifs mensuels: 47,3 millions
• Pourcentage de réservation mobile: 42,6%

Comptoirs du service client aéroportuaire

Southwest exploite 742 compteurs de service à la clientèle dans 101 aéroports aux États-Unis. Ces compteurs ont traité 11,2% du total des réservations, soit 4,3 milliards de dollars de ventes directes.

Métrique de service aéroport	2022 données
Comptoir total du service client	742
Aéroports servis	101
Pourcentage de réservation	11.2%

Agences de voyage en ligne tierces

Southwest s'est associé à 12 grandes agences de voyage en ligne, générant 3,6 milliards de dollars par le biais de ces canaux en 2022. Ces agences ont contribué 8,7% du volume total de réservation.

• Partenaires de l'agence de voyage en ligne: 12
• Revenus de réservation de tiers: 3,6 milliards de dollars
• Pourcentage de réservation: 8,7%

Services de réservation téléphonique directe

Le centre de réservation téléphonique de Southwest a géré 5,2 millions d'appels par mois, traitant 4,3% du total des réservations. Les ventes téléphoniques ont généré 1,7 milliard de dollars de revenus en 2022.

Métrique de réservation téléphonique	2022 données
Volume d'appel mensuel	5,2 millions
Pourcentage de réservation téléphonique	4.3%
Revenus de ventes téléphoniques	1,7 milliard de dollars

Southwest Airlines Co. (LUV) - Modèle d'entreprise: segments de clients

Voyageurs de loisir

Southwest Airlines dessert 121 destinations dans 42 États américains et 10 pays supplémentaires en 2023. Les voyageurs de loisirs représentent environ 65% de la base de passagers de la compagnie aérienne.

Caractéristique du segment	Pourcentage
Part de marché des voyages de loisir	65%
Longueur moyenne de voyage de loisirs	3,2 jours
Prix ​​moyen des billets de loisir	$157

Professionnels des affaires

Les voyageurs d'affaires représentent environ 35% des démographies des passagers de Southwest.

• Couverture des itinéraires commerciaux fréquents: 94 itinéraires commerciaux directs
• Prix ​​moyen des billets d'affaires: 289 $
• Programme de fidélité des voyageurs d'affaires: 42%

Consommateurs soucieux du budget

Southwest cible les clients sensibles aux prix avec des stratégies de tarification compétitives.

Tarification métrique	Valeur
Prix ​​moyen des billets	$189
Garantie tarifaire la plus basse	Oui
Pourcentage de clients sensibles aux prix	58%

Dépliants fréquents

Southwest Rapid Rewards Program compte 67 millions de membres actifs en 2023.

• Taux de croissance de l'adhésion du programme de fidélité: 8,3% par an
• Pourcentage de clients réguliers: 52%
• Miles annuels moyens réalisés par membre: 12 400

Marché des voyages américains nationaux

Le sud-ouest domine le marché national des compagnies aériennes américaines avec une part de marché importante.

Métrique du marché	Pourcentage
Part de marché intérieur	24.3%
Volume de passagers domestiques	162,7 millions de passagers en 2022
Couverture d'itinéraire domestique	95 villes américaines

Southwest Airlines Co. (LUV) - Modèle d'entreprise: Structure des coûts

Dépenses de carburant

En 2023, Southwest Airlines a déclaré des frais de carburant totaux de 5,9 milliards de dollars. La compagnie aérienne a consommé environ 1,9 milliard de gallons de carburant au cours de l'année. Le coût du carburant par gallon était en moyenne de 3,10 $ en 2023.

Catégorie de dépenses de carburant	Montant (milliards de dollars)
Total des dépenses de carburant	5.9
Consommation de carburant (gallons)	1,9 milliard
Coût moyen par gallon	3.10

Entretien et location des avions

Southwest Airlines a dépensé 1,2 milliard de dollars pour la maintenance des avions en 2023. La société exploite une flotte de 834 Boeing 737, avec 81% détenue et 19% loué.

Catégorie de dépenses de maintenance	Montant (milliards de dollars)
Total des frais de maintenance	1.2
Flotte totale d'avions	834
Avion appartenant (%)	81
Avion loué (%)	19

Salaire et avantages sociaux des employés

En 2023, Southwest Airlines a alloué 6,1 milliards de dollars aux salaires et avantages sociaux des employés. L'entreprise emploie 66 325 employés à temps plein.

Catégorie de dépenses des employés	Montant
Total des salaires et avantages sociaux des employés	6,1 milliards de dollars
Total des employés	66,325

Coûts opérationnels de l'aéroport

Southwest Airlines a engagé 2,8 milliards de dollars de coûts opérationnels aéroportuaires au cours de 2023, couvrant les frais d'atterrissage, les dépenses des installations aéroportuaires et la manipulation du sol.

Catégorie de dépenses opérationnelles aéroportuaires	Montant (milliards de dollars)
Total des coûts d'exploitation aéroportuaire	2.8

Frais de marketing et d'acquisition des clients

La compagnie aérienne a dépensé 450 millions de dollars en marketing et acquisition de clients en 2023, ce qui représente environ 1,5% de ses revenus d'exploitation totaux.

Catégorie de dépenses de marketing	Montant
Frais de marketing et d'acquisition des clients	450 millions de dollars
Pourcentage de revenus d'exploitation	1.5%

Southwest Airlines Co. (LUV) - Modèle d'entreprise: Strots de revenus

Ventes de billets de passagers

En 2023, Southwest Airlines a déclaré un chiffre d'affaires total de 23,8 milliards de dollars. Les ventes de billets de passagers représentaient la principale source de revenus, avec la ventilation suivante:

Catégorie de billets	Revenus (2023)
Revenus de passagers intérieurs	20,1 milliards de dollars
Revenus internationaux des passagers	2,7 milliards de dollars

Frais de bagages

Southwest maintient une politique unique des frais de bagages:

• Les deux premiers sacs enregistrés volent gratuitement
• Les frais de bagages surdimensionnés / en surpoids varient de 75 $ à 125 $

Les revenus liés aux bagages en 2023 ont totalisé environ 1,2 milliard de dollars.

Programme de fidélité rapide

Le programme Rapid Rewards généré:

• Revenus de partenariat de carte de crédit: 868 millions de dollars en 2023
• Revenus de rachat de fidélité Point: 453 millions de dollars

Ventes de services en vol

Catégorie de service	Revenus (2023)
Aliments et boissons en vol	276 millions de dollars
Services Wi-Fi	112 millions de dollars

Services de fret et auxiliaires

Revenus de service et de service auxiliaires du Sud-Ouest en 2023:

• Transport du fret: 237 millions de dollars
• Services à charte: 154 millions de dollars
• Autres revenus auxiliaires: 312 millions de dollars

Southwest Airlines Co. (LUV) - Canvas Business Model: Value Propositions

You're looking at the core promises Southwest Airlines Co. (LUV) is making to its customers as of late 2025, especially as they navigate major product shifts. Honestly, the value proposition is now a blend of their historic strengths and new, revenue-focused offerings.

Low-fare, High-Satisfaction Flying Experience

The commitment to a high-satisfaction experience remains a key differentiator, particularly in the economy cabin. You see this reflected in the external validation. Southwest Airlines ranked highest in customer satisfaction in the economy/basic economy segment for a fourth consecutive year in the J.D. Power 2025 North America Airline Satisfaction Study, scoring a 694 on the 1,000-point scale. That score is partly driven by frontline personnel; positive experiences with airline staff were responsible for a 9-point increase in satisfaction for economy/basic economy passengers.

Operationally, the airline has demonstrably improved reliability, which underpins customer trust. For instance, in February 2025, Southwest led North American carriers with an on-time performance of 82.3 percent. Furthermore, they achieved a completion factor of 99.6 percent across 102,457 observed flights that month. The airline also recorded the industry's lowest complaint rate at 1.71 per 100,000 passengers. This operational turnaround followed significant investment, including $1.3 billion in modernized IT systems.

The value proposition here is that you get top-tier economy satisfaction coupled with industry-leading operational metrics, even as the fare structure evolves. It's a strong selling point.

Transparency: Policy Changes and Fare Structure

The traditional transparency of 'bags fly free' has been significantly altered, aligning Southwest Airlines Co. (LUV) more closely with its competitors, though some elements of flexibility remain. The new baggage policy, effective for flights booked on or after May 28, 2025, means the two free checked bags perk is now tiered. The airline expects to generate $350 million in 2025 from these new baggage fees, which began on May 28.

Here is the breakdown of the baggage value proposition as of late 2025:

Customer/Fare Type	Free Checked Bags	First Checked Bag Fee (If Not Free)	Second Checked Bag Fee (If Not Free)
A-List Preferred Members & Business Select Customers	Two	$0	$0
A-List Members & Select Customers	One	Charged	Charged
Rapid Rewards Credit Cardmembers	One (Credited)	Charged	Charged
All Other Customers	Zero	Charged	Charged

Regarding flight flexibility, which was another hallmark of transparency, flight credits issued for tickets purchased on or after May 28, 2025, will now expire one year from the ticketing date, but the new Basic fare credits expire sooner, at six months from ticketing date.

Frequent, Direct, Point-to-Point Flights

Southwest Airlines Co. (LUV) continues to lean on its extensive domestic network. The airline remains committed to a strong network featuring the most nonstop flights within the U.S.. This point-to-point structure, often utilizing secondary airports to keep costs down, is a foundational element that supports the low-fare promise. While specific numbers on the use of secondary airports aren't immediately available, the sheer scale of their nonstop operation is the core value here.

• Maintains the most nonstop flights within the U.S..
• Achieved a 98.3 percent completion rate of its published flight schedule year-over-year improvement as of February 2025.
• Expanded distribution to reach new customers via Expedia starting last month.

New Basic Fare Option

To capture the most price-sensitive segment, Southwest Airlines Co. (LUV) introduced a new fare category. The Basic fare was launched for the lowest-priced tickets purchased on or after May 28, 2025. This tier is designed for fliers prioritizing price above all else, and it notably ditches perks like advanced seat assignments and extra legroom options. Flight credits associated with this lowest-tier fare have a shorter expiration window of six months from the ticketing date.

Premium Seating Options

The airline is actively transforming its product by introducing paid premium seating, a major shift from its historic open-seating model. The sale of these new products, including the Extra Legroom seats, is scheduled to begin in the back half of 2025. The physical rollout is aggressive: the airline plans to retrofit its entire fleet between April 30 and the end of 2025. These extra legroom rows will offer three to five inches more space than standard seats. This transformation is expected to be a significant financial driver; management projects more than $1 billion of incremental EBIT from assigned and extra legroom seating in 2026, with a target full run rate of approximately $1.5 billion in 2027.

The value for certain loyal customers is maintained, though: A-List members may receive complimentary access to these seats based on tier and booking timing.

Finance: finalize the 13-week cash flow projection for Q1 2026 by Monday.

Southwest Airlines Co. (LUV) - Canvas Business Model: Customer Relationships

Southwest Airlines Co. maintains a relationship strategy balancing its historic high-touch service with new transactional elements.

Dedicated, high-touch customer service ('Fun, Friendly Flying Experience')

The dedication to service is reflected in the Net Promoter Score (NPS) of 48 in Q1 2025, which is above the airline industry average of 33. This score shows that 59% of passengers are Promoters. Southwest Airlines Co. was named #1 in Customer Satisfaction among Economy Class Passengers by J.D. Power for four consecutive years as of 2025. Operational reliability supports this relationship, with the airline operating 98.3% of its published flight schedule without cancellations in 2025. The airline employs over 72,000 full-time workers who shape brand marketing through daily interactions.

Automated self-service via website and mobile app

Digital self-service travel tools are available online and in the app to help manage trips. Customers use these tools to perform specific actions.

• Track their baggage.
• Buy upgraded boarding.
• Buy lap child seat.

Inflight, Rapid Rewards® Members receive Free WiFi on unlimited devices thanks to T-mobile.

Highly personalized engagement through the Rapid Rewards program

The Rapid Rewards program saw significant earning structure adjustments effective March 4, 2025, to better align rewards with higher-value fares. Loyalty revenue increased 7% year over year in Q3 2025. The Companion Pass qualification threshold remains 135,000 Companion Pass qualifying points or 100 qualifying one-way flights per calendar year. The program now features variable redemption rates starting in 2025.

Fare Type	2025 Points Earned Per Dollar	Change from Previous Rate
Wanna Get Away	2 points per dollar	Down from 6 points per dollar (-67%)
Wanna Get Away Plus	6 points per dollar	Down from 10 points per dollar (-40%)
Anytime fares	10 points per dollar	No change
Business Select	14 points per dollar	Up from 12 points per dollar (+16%)

Transactional relationship for the new Basic fare segment

The introduction of the new Basic fare on May 28, 2025, established a more transactional relationship for the lowest-priced tickets. This fare does not include free checked bags for most passengers, which is a shift from the previous policy. Flight credits associated with the Basic fare expire six months from the purchase date. The initial launch of this product caused a temporary reduction in the website conversion rate for three weeks, from May 28 through June 15. This dip resulted in a half percentage point hit to the Q2 2025 Revenue per Available Seat Mile (RASM), with an expected further one percentage point impact in the third quarter. Separately, the new checked bag fees are estimated to result in more than $350 million of earnings before interest and taxes for the full year 2025. In Q2 2025, passenger revenue was $6.6 billion, a decrease of 1.3% year over year.

Southwest Airlines Co. (LUV) - Canvas Business Model: Channels

You're looking at how Southwest Airlines Co. (LUV) gets its product-seats on planes-into the hands of customers as of late 2025. The strategy has seen a significant, albeit cautious, pivot away from its long-held direct-only stance.

Direct Sales: Southwest.com and mobile application (primary channel)

The airline continues to prioritize its own digital properties, Southwest.com and the mobile application, as the core booking mechanism. This approach historically allowed Southwest Airlines Co. (LUV) to avoid third-party commissions, keeping distribution costs low. Even with recent changes, the airline stated that for its new in-house vacation product, Getaways by Southwest, it will tilt the lion's share of distribution toward these direct channels. This focus is logical, as the airline reported operating 98.3 percent of its published flight schedule without cancellations as of February 28, 2025, indicating a stable platform for direct transactions.

Online Travel Agencies (OTAs): Expanded distribution via Expedia in 2025

A major shift occurred in 2025, breaking nearly two decades of direct-only sales. Southwest Airlines Co. (LUV) began relaxing distribution restrictions in February 2025 by launching sales through Expedia Group sites, including Expedia, Travelocity, Hotwire, Orbitz, and CheapTickets, covering its entire network of 117 destinations in 11 countries. This partnership delivered immediate results; during its August 2025 earnings call, Expedia Group reported the collaboration contributed about 5 percent of Southwest Airlines Co. (LUV)'s passenger volume in Q2 2025 alone. Following this success, Southwest signed a direct distribution agreement with Booking Holdings in August 2025, adding Priceline, Booking.com, and Agoda to its distribution footprint.

Airport ticket counters and customer service centers

The traditional channels remain active, serving customers who prefer or require in-person assistance. These counters handle ticketing, changes, and customer service interactions across the network. While the focus is digital, these physical touchpoints are essential for the overall customer experience, especially for complex itinerary changes or for travelers less comfortable with self-service digital booking.

New in-house vacation package brand, Getaways by Southwest

In August 2025, Southwest Airlines Co. (LUV) launched its new in-house vacation package product, Getaways by Southwest, replacing the previous offering managed by ALG Vacations Corp.. This product bundles airfare with hotel, car, and ground transportation options for over 30 leisure destinations, including Las Vegas and Orlando. The packages come with specific incentives, such as offering two checked bags for free (a perk eliminated for general passengers in May 2025) and awarding five Rapid Rewards points per dollar spent on bookings.

Here's a quick look at the channel evolution and key metrics as of late 2025:

Channel Type	Status/Key 2025 Event	Associated Metric/Data Point
Direct (Website/App)	Primary distribution focus maintained	Targeted for lion's share of Getaways by Southwest sales
Expedia Group (OTA)	Launched February 2025	Contributed 5 percent of passenger volume in Q2 2025
Booking Holdings (OTA)	Agreement signed August 2025	Expanded reach to Priceline, Booking.com, Agoda
Getaways by Southwest	Launched in-house August 2025	Offers five Rapid Rewards points per dollar spent
Airport Counters	Traditional sales/support	Supports network of 802 aircraft as of Q3 2025

The shift to OTAs is clearly aimed at capturing new customer segments who use comparison sites, which is important because most Millennials and Gen X travelers prefer booking via OTAs.

You should note the following key channel-related features:

• Getaways by Southwest offers vacation travel credits valid for 18 months upon cancellation.
• The airline is actively managing its fare structure, introducing a new, Basic fare on lowest-priced tickets purchased on or after May 28, 2025.
• The new Basic fare flight credits expire six months from the date of ticketing.
• Choice fare credits created on or after May 28, 2025, expire twelve months from the ticketing date.

Finance: draft 13-week cash view by Friday.

Southwest Airlines Co. (LUV) - Canvas Business Model: Customer Segments

Southwest Airlines Co. (LUV) continues to serve a diverse set of travelers, though its transformation efforts in 2025 signal a deliberate segmentation toward higher-yield customers while still catering to its core base.

Domestic Leisure Travelers seeking affordable, convenient travel.

This segment remains central, evidenced by the sheer volume of passengers carried. In the third quarter of 2025, Southwest Airlines carried 34.5 million revenue passengers, with 43.8 million enplaned passengers overall. The average passenger fare in that quarter was $182.56. However, the market dynamics for this group shifted; CEO Bob Jordan described a 'recession' in domestic leisure travel in the first half of 2025. This price sensitivity is a known factor, as a 2025 survey by J.D. Power indicated that 68% of leisure travelers prioritize affordability over ancillary perks. To address this, Southwest introduced a new Basic fare on tickets purchased on or after May 28, 2025. The airline is evolving away from its historic 'bags fly free' model, having implemented bag fees starting May 28, 2025. Before this change, the airline earned only $73.4 million from baggage fees compared to peers.

Families attracted by low fares and bag policies.

The shift in baggage policy directly impacts families. While the airline is implementing new fees, it is important to note that Southwest Airlines continues to retain its two free checked bags policy, which serves as a key differentiator against other major U.S. carriers. The introduction of the new fare structure, including the Basic fare, is designed to appeal to the most price-sensitive customers, which often includes families planning vacations.

Price-sensitive Business Travelers valuing frequency and reliability.

Business travel demand showed signs of sequential improvement through the third quarter of 2025. Corporate sales for future travel, excluding government bookings, increased by 5% year-over-year in Q3 2025. Southwest Airlines' domestic managed business share is currently estimated to be in the mid-teens. Operational reliability remains a key value proposition for this segment; in 2025, Southwest operated 98.3% of its published flights without cancellations.

New segment of customers seeking premium seating and assigned seats.

Southwest Airlines Co. is actively courting customers who prefer structure, aiming to unlock new revenue streams. Research indicated that 80% of current Southwest customers and 86% of potential customers preferred an assigned seat. The airline expects to generate $1.5 billion in annual revenue from seat selection alone. Sales for assigned seating began in late 2025, with the full operational rollout scheduled for flights starting January 27, 2026. This new offering is structured around tiered seating options:

Seat Type	Description/Location
Extra Legroom	Seats in the front of the cabin and exit rows
Preferred	Standard legroom seats near the front of the cabin
Standard	Seats in the back of the cabin

The transformation plan, which includes these seating changes, is targeted to generate $1.8 billion in incremental earnings in 2025. As of the third quarter of 2025, the airline had completed retrofits on more than 400 aircraft to include extra legroom seating.

• The new fare bundles allow customers to select seats during booking.
• A-List and A-List Preferred Customers receive complimentary seat selection at booking regardless of fare type.
• Priority Boarding can be purchased 24 hours prior to departure.

Southwest Airlines Co. (LUV) - Canvas Business Model: Cost Structure

Southwest Airlines Co. operates with a cost-driven structure, constantly focusing on operational efficiency to maintain its low-fare proposition. The airline is taking a hard look at its cost structure because its performance is not where management wants it to be.

Major costs center on fuel, labor, and maintenance. Labor costs are a significant driver, with unit costs continuing to be pushed up primarily by inflationary pressures, including those tied to labor contracts ratified in 2024. For instance, the Cost per Available Seat Mile excluding fuel (CASM-X) increased 4.7 percent year-over-year in the second quarter of 2025. Fuel prices remain volatile, contributing to revised outlooks; the estimated fuel cost per gallon for the third quarter of 2025 was projected to be between $2.20 to $2.30. The airline has also incurred costs related to maintenance, such as the timing of engine overhaul expenses and aircraft retrofit costs ahead of new seating launches.

Here's a quick look at some key cost metrics as of mid-2025:

Metric	Period	Value
Economic Fuel Cost per Gallon	Q1 2025	$2.49
CASM-X Year-over-Year Increase	Q1 2025	4.6 percent
CASM-X Year-over-Year Increase	Q2 2025	4.7 percent
CASM-X Year-over-Year Increase	Q3 2025	2.5 percent
Operating Expenses Year-over-Year Increase (Excl. Fuel, Special Items, Profit Sharing)	Q3 2025	3.4 percent

To combat these pressures, Southwest Airlines Co. accelerated its cost reduction plan, targeting approximately $370 million in savings for the 2025 fiscal year. This acceleration followed an earlier plan to realize some $500 million in annual cost-savings. The efficiency drive included a 15 percent reduction in corporate jobs, approximately 1,750 roles, implemented in February 2025, which was estimated to save $210 million in 2025.

The airline maintains high fixed costs associated with its infrastructure and fleet. The total fleet size at the end of the third quarter of 2025 stood at 802 aircraft. Capital expenditures for the third quarter of 2025 totaled $678 million, covering major investments. You can expect the full year 2025 capital spending to fall within the range of $2.5 billion to $3.0 billion. Key areas contributing to these fixed/capital outlays include:

• Fleet ownership and new aircraft deliveries (e.g., 53 -8 aircraft deliveries expected for full year 2025)
• Airport infrastructure costs
• Technology investments

Finance: draft 13-week cash view by Friday.

Southwest Airlines Co. (LUV) - Canvas Business Model: Revenue Streams

You're looking at the core ways Southwest Airlines Co. (LUV) brings in cash as of late 2025. The biggest piece, as always, is flying people from point A to point B.

Passenger Revenue hit a first quarter record in Q1 2025, coming in at $5.8 billion. This was supported by an all-time record yield performance for that quarter. The airline reported Q1 2025 operating revenues were a first quarter record of $6.4 billion overall.

The loyalty ecosystem, heavily reliant on the co-brand credit card partnership with Chase, continues to be a major driver. Loyalty and marketing revenues now represent more than 20% of total revenue at Southwest Airlines. For the third quarter of 2025, loyalty revenue specifically was up 7 percent year-over-year, and new co-brand credit card acquisitions grew by double digits over the same period.

New ancillary revenue streams started rolling out in the second quarter of 2025, designed to diversify income beyond the base fare. The launch of bag fees saw a financial benefit that exceeded expectations, with no negative operational impact reported. Simultaneously, the rollout of the new basic economy product structure began laying the groundwork for future product differentiation and fare up-sells. The company noted in Q2 that it was already seeing incremental fare product buy up occurring at that early stage.

Here's a quick look at some key figures impacting the revenue picture for 2025:

Metric	Value/Guidance	Period/Context
Passenger Revenue	$5.8 billion	Q1 2025 Record
Total Operating Revenue	$6.4 billion	Q1 2025 Record
Loyalty Revenue Share	More than 20%	Of Total Revenue
Co-brand Card Acquisitions Growth	Double digits	Q3 2025 Year-over-Year
Full-Year 2025 EBIT Guidance (Excl. Special Items)	Approximately $500 million	Revised Full-Year Outlook

The overall profitability expectation for the full year 2025, specifically earnings before interest and taxes excluding special items, has been revised to approximately $500 million. This figure is down from a prior expectation of $600 million to $800 million, reflecting lower revenue due to a government shutdown and the impact of higher fuel prices. Still, the company reaffirmed its targets for incremental EBIT contribution from its slate of initiatives, aiming for $1.8 billion for full year 2025.

• Q1 2025 RASM (Unit Revenues) increased 3.5 percent year-over-year.
• Q1 2025 Co-brand card spend was a first quarter record.
• Q3 2025 Loyalty Revenue up 7 percent year-over-year.