Southwest Airlines unveiled its 'Southwest Even Better' transformational plan on September 26, 2024, outlining a strategy to boost profits and address activist investor concerns. Key initiatives include introducing assigned seating and extra legroom seats, with the latter debuting in 2026 offering at least 34 inches of legroom.
The airline aims to generate an additional $4 billion in earnings before interest and taxes (EBIT) by 2027 from these initiatives. Other strategic changes include launching overnight (red-eye) flights and forming its first international partnership with Icelandair.
In a move to return value to shareholders, Southwest's board authorized a new $2.5 billion share repurchase program. The company also raised its third-quarter revenue forecast, expecting unit revenue to rise as much as 3%, up from a previous forecast of a decline of up to 2%.
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