Southwest Airlines

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History

Southwest Airlines was founded in 1967 by Herb Kelleher and Rollin King as Air Southwest Co., conceived to connect Dallas, Houston, and San Antonio as a low-cost intrastate Texas carrier exempt from federal regulation. After surviving legal challenges from competitors, the airline began service in June 1971 under the Southwest Airlines name, pioneering a low-fare, high-frequency, point-to-point model that avoided traditional hub-and-spoke operations. Following the Airline Deregulation Act of 1978, Southwest expanded into interstate service starting in 1979 and grew into one of the largest US carriers by domestic passenger volume, built on an all-Boeing 737 fleet and a distinctive low-fare, open-culture brand. In 2024-2025 the company faced significant pressure from activist investor Elliott Investment Management, leading to board and leadership changes alongside the end of decades-old policies. The airline retired its long-standing two-free-checked-bags policy in May 2025 and introduced assigned seating in January 2026, marking the most substantial shift in its business model since founding.

Current Operations

Southwest operates one of the world's largest all-Boeing 737 fleets, with roughly 800 aircraft in service as of late 2025, including 737-700s, -800s, and a growing number of 737 MAX 8s, with over 450 MAX aircraft on order as it works toward an all-MAX fleet around 2031. The carrier serves more than 100 destinations across 43 US states plus Puerto Rico, Mexico, Central America, and the Caribbean, using a rolling point-to-point network anchored by major operating bases including Dallas Love Field, Chicago Midway, Denver, Las Vegas, Phoenix, Houston Hobby, Baltimore-Washington, and Atlanta. Southwest is not a member of any global airline alliance, though it has begun forming limited codeshare partnerships, including with Icelandair, and listing fares on third-party platforms like Google Flights and Expedia for the first time. Facing investor pressure, the airline underwent major operational changes in 2024-2026, including its first-ever mass layoffs affecting roughly 15% of corporate staff, the end of free checked bags, and the rollout of assigned seating and premium cabin options starting January 2026. These shifts represent a fundamental repositioning of Southwest's traditionally no-frills brand toward more conventional airline revenue practices.

Last verified 2026-08-22· Source: airline public disclosures, company press releases & aviation-industry reporting.

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