Southwest Airlines Shares Tumble 1.89% as $230M Trading Volume Slides to 446th Rank Amid Cost-Cutting Overhaul

On August 11, 2025, Southwest Airlines (LUV) fell 1.89% with a trading volume of $230 million, ranking 446th in market activity. The carrier continues to implement cost-cutting measures under Elliott Investment Management’s ownership, including a 15% workforce reduction and the elimination of long-standing policies such as open seating and free checked bags. A key policy overhaul targets “customer of size” accommodations, now requiring passengers to purchase two seats in advance for additional space. Refunds for the second seat will only apply if the flight departs with at least one empty seat, and the process will be retroactively determined post-boarding, potentially complicating rebooking efforts.

Leadership changes further underscore the airline’s restructuring. Doug Brooks was appointed board chair, succeeding Rakesh Gangwal, who stepped down due to external commitments. A new Fleet Oversight Committee was established to oversee aircraft acquisition strategies. These shifts align with broader operational adjustments, including the introduction of assigned seating and a basic economy fare tier. Analysts note the reforms aim to stabilize financial performance following five years of weak results, though customer backlash over policy changes remains a risk.

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