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Company Profile

Southwest Airlines

Comprehensive interview intel — history, fleet, compensation, hiring, culture, and strategy. Know the company inside and out before you walk in.

Big-picture snapshot

Southwest is the largest low-cost carrier in the world, headquartered in Dallas, Texas, and operating an all-Boeing 737 fleet of approximately 803 aircraft. It was co-founded by Herb Kelleher and Rollin King in 1967 as an intrastate Texas airline, is not a member of any global alliance, operates approximately 4,000+ daily flights to 123 destinations in 42 states, Puerto Rico, Mexico, Central America, and the Caribbean, and employs approximately 11,409 active pilots. Bob Jordan has been CEO since February 1, 2022.

For interview purposes, the simplest way to frame Southwest is this: it is a company undergoing the most dramatic transformation in its 54-year history. In 2025-2026, Southwest ended its legendary open seating policy, introduced assigned seats and extra-legroom seating, began charging for checked bags for the first time ever, and restructured its fare classes — all under pressure from activist investor Elliott Investment Management. This is not a company coasting on its heritage. It is a company reinventing itself while preserving the cultural DNA that made it the most admired low-cost carrier in aviation history.

Southwest's model is fundamentally different from the Big Three (Delta, United, American). It operates a single fleet type (Boeing 737), uses a point-to-point network model with rolling hubs rather than traditional hub-and-spoke, does not offer international long-haul service, and has historically differentiated through low fares, no baggage fees, and a fun, employee-first culture. Understanding these structural differences — and how they are now evolving — is essential for any interview.

Company history

Southwest's origin story is one of the most celebrated in American business. In 1967, San Antonio attorney Herb Kelleher and businessman Rollin King drew a triangle on a cocktail napkin connecting Dallas, Houston, and San Antonio — and Air Southwest Co. was incorporated on March 15, 1967. The company was renamed Southwest Airlines Co. in 1971, and the first flights took off on June 18, 1971 from Dallas Love Field.

The airline almost never happened. Braniff International, Trans-Texas Airways, and Continental Airlines sued to prevent Southwest from flying, and the case went all the way to the Texas Supreme Court and the U.S. Supreme Court before Southwest finally won the right to operate. That scrappy, underdog identity became core to Southwest's culture and persists to this day.

Herb Kelleher is the most important figure in Southwest's history and arguably the most influential airline leader in U.S. history. He served as co-founder and legal counsel from 1966, became President, CEO, and Chairman from 1982 to 2001, and remained Chairman Emeritus until his death on January 3, 2019, at age 87. Kelleher pioneered the low-cost carrier model, created Southwest's famously fun, employee-first culture, and proved that an airline could be consistently profitable while keeping fares low and employees happy. He is widely regarded as the father of the modern LCC.

The full CEO succession:

  • Lamar Muse (1971-1978) — first CEO, launched Southwest's operations and built early route network within Texas
  • Howard Putnam (1978-1981) — led Southwest through initial expansion beyond Texas after deregulation
  • Herb Kelleher (1982-2001) — transformative leader, built Southwest into the most profitable airline in U.S. history at the time, created the company culture, died January 3, 2019
  • Jim Parker (2001-2004) — led through September 11 aftermath; Southwest was the only major airline to not furlough employees or lose money after 9/11
  • Gary Kelly (2004-2022) — longest-tenured CEO; guided Southwest through the Great Recession, added international destinations, launched Hawaii service (2019), stepped down as executive chairman in October 2024 under Elliott pressure
  • Bob Jordan (2022-present) — 38-year Southwest veteran, leading the largest transformation in company history; survived Elliott Investment Management's campaign to remove him

Key historical milestones to know:

  • 1967: Air Southwest Co. incorporated in San Antonio by Herb Kelleher and Rollin King
  • 1971: First flights on June 18 from Dallas Love Field — Dallas, Houston, San Antonio
  • 1971-1973: Won Supreme Court battles against competitors trying to stop operations
  • 1979: First flights outside Texas (New Orleans) after airline deregulation
  • 1981: Introduced "Luv" branding (NYSE ticker: LUV), adopted Love Field as headquarters
  • 1988: Became the first airline to win the Triple Crown (best on-time, fewest bags lost, fewest complaints) — won it five consecutive years
  • 1997: Started Rapid Rewards loyalty program
  • 2009: Acquired AirTran Airways — gained Atlanta hub, first 737-800s, and first international destinations
  • 2014: Launched first international flights (Mexico, Caribbean, Central America)
  • 2019: Launched Hawaii service; Herb Kelleher died (January 3)
  • 2024: SWAPA ratified new $12 billion pilot contract (January); Elliott Investment Management acquired 10%+ stake and pressured for leadership changes; board settlement in October — five Elliott directors joined, Gary Kelly stepped down as chairman
  • 2025: Ended 54-year open seating policy; introduced assigned seating, bag fees, basic economy; began transformation plan
  • 2026: Austin crew base opening (March); assigned and extra-legroom seating going live; stock up 23% on transformation optimism
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Sources listed at the end of each profile. Data compiled from public filings, airline newsrooms, AirlinePilotCentral, Glassdoor, FAA records, and industry publications.