Once known for quirky commercials and its “bags fly free” promise, Southwest Airlines is now flying a very different route—straight to Wall Street.
And it’s clear the airline’s focus has shifted from passenger perks to investor returns.
Behind this shift is CEO Bob Jordan, who’s been steering the airline through its most dramatic changes in decades.
And yes, he’s watching the stock price—daily.
CEO Admits He Checks the Stock Every Day
In a candid interview with The New York Times, Jordan didn’t sugarcoat it.
When asked how often he tracks the company’s stock performance, his response was simple: “I watch it constantly. Daily.”
That answer probably doesn’t sit well with long-time passengers who are still upset about Southwest scrapping its iconic free checked bags policy—something that defined the airline for over 50 years.
The day that controversial decision was announced, Southwest’s stock jumped by 21%, instantly increasing the value of Jordan’s own shares by a cool $871,000.
Company Stands By the CEO
In a statement to DailyMail.com, a company spokesperson backed Jordan, saying he has a duty to serve all corners of the Southwest world—its customers, employees, and shareholders alike.
“Our stock price supports the interests of all three groups,” they said.
Still, not everyone’s convinced that those interests are really being balanced.
Profits Are Up But So Is Public Backlash
Financially, Southwest is doing just fine. Its stock is up more than 22% over the past year.
But while investors may be celebrating, many customers feel betrayed.
The decision to start charging for checked bags wasn’t the only big change.
Southwest has also introduced basic economy fare tiers, ended its open seating policy, and for the first time ever, laid off employees.
All of this has come in the wake of pressure from activist investor Elliott Investment Management, which made a $2 billion investment in the airline in 2024.
The firm criticized Southwest’s “outdated” business model and even suggested Jordan should be replaced.
Jordan Says It’s About Listening to Passengers
Jordan has defended the changes, saying they’re about adapting to what customers want in a post-pandemic world.
“If you don’t follow your customers, you look up one day and your products just aren’t attractive any longer,” he said.
As for the bag fees? He called them a matter of “choice.”
Social Media Thinks Otherwise
That explanation didn’t land well online. Critics on Reddit and Twitter (now X) called his comments “tone deaf” and even “gaslighting.”
“Southwest used to be an employee-first airline, then customer-first,” one popular Reddit post read. “Now they’re shareholder-first.”
The Rollout Was Rough
Public relations experts agreed that the company’s communication around the bag fees didn’t help.
Eric Wein, a PR executive from California, said the shift might have made sense financially, but it damaged the brand’s trust.
“It’s surprising that Southwest seemed to lose sight of its customer loyalty and brand appeal in making these rather necessary financial moves,” he said.
Everyone Else Is Already Doing It
Despite the criticism, there’s no denying the move could be profitable.
In 2023 alone, major U.S. carriers like Delta, United, and American raked in over $33 billion combined just from baggage fees.
Southwest may have simply decided it was time to stop leaving that kind of money on the table—especially if it wants to compete long term.
What’s Next for Southwest?
So where does that leave Southwest and its passengers? For now, it looks like the airline is betting big on the market, even if it means disappointing some loyal fliers along the way.
The company may be flying higher financially, but it’s clear that turbulence remains when it comes to its public image.