Sky Industry News

Southwest recently announced plans to lay off approximately 1,750 employees or about 15% of its workforce. The company aims to reduce costs and streamline operations amid a competitive aviation market. These organizational changes are intended to position Southwest on a sustainable path forward.

Further leadership changes include the upcoming resignations of board members Eduardo F. Conrado and Elaine Mendoza after the annual shareholder meeting on April 25, 2025. Their departures are part of an agreement made between Southwest and Elliott last October, which will reduce the board size from 15 to 13 members, with five appointed by Elliott.

Ryan Green played a key role in introducing assigned and premium seats at Southwest, marking a shift from its traditional open seating policy—a core aspect of its business model. These changes were announced last summer as part of efforts to adapt to evolving market conditions and accommodate more passengers.

The airline faces increased competition due to rising operational costs and delivery delays from Boeing, its sole aircraft supplier. Additionally, an oversupplied domestic market has challenged Southwest's profitability and competitiveness.

To address these challenges, Southwest is updating its service offerings by eliminating open seating policies and adding more legroom on planes. The airline also plans to introduce "red-eye" flights aimed at attracting business travelers and boosting revenue.