Southwest Airlines Adjusts Policy for Plus-Size Passengers, Implements Extra Seat Purchase Requirement and Stricter Refund Policy

Southwest Airlines is revising its policy for plus-size passengers, requiring them to purchase an extra seat in advance, starting January 27. Refunds will be subject to more stringent requirements. This change marks a significant shift from the previous "Customer of Size" policy. The company operates nearly 800 aircraft and has a market capitalization of approximately $17.08 billion. Its financial performance is mixed, with revenue growth and profitability margins below historical ranges, and a high dividend payout ratio. The company faces challenges from other carriers but has a competitive edge in its point-to-point network and customer-friendly policies. Its valuation is premium, with a P/E ratio of 49.27 and a price-to-sales ratio of 0.7. Analysts recommend a hold, with a target price of $31.57.