Southwest Airlines Just Broke One of Its Oldest Rules. Now What?
TL;DR
Quick Summary
- Southwest has ended open seating and introduced bag and seat fees, shifting a 54-year-old business model by early 2026.
- Management is guiding for roughly $4 in adjusted EPS for 2026, up from about $0.93 in 2025, leaning on new revenue streams.
- The stock near $40–$41 (vs. a 52-week range of $23.82–$45.02) reflects rising expectations that Southwest can turn brand changes into real profit.
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Disclaimer: KAHROS is a financial media and technology company. The Services, including any AI-generated content and articles, are for informational purposes only and do not constitute financial, legal, tax, or investment advice, nor an offer or solicitation to buy or sell any securities. Market information may be time-sensitive, incomplete, or subject to change without notice. We are not a registered broker-dealer or investment advisor. Please refer to our Terms of Service for more details.
