Southwest Airlines is exploring the possibility of launching long-haul international services within the next five years as the carrier continues to broaden its appeal and respond to evolving customer demand.
Speaking at the Bernstein Strategic Decisions Conference, Southwest CEO Bob Jordan said the airline’s recent product changes, including assigned seating and fare segmentation, have been well received by travelers.
The strategic changes also contributed to strong financial results. Southwest reported an 11.2% increase in first-quarter revenue per available seat mile compared with the same period last year.
Jordan said international expansion is a logical next step as the airline looks to offer customers more of the destinations they want to reach without switching carriers.
“We are likely to move into long-haul international flying over the next five years,” Jordan told during the conference. “We’re not looking to replicate the extensive global networks of Delta, United or American, but we can be highly relevant by serving a select group of destinations our customers value most.”
Rather than building a sprawling international operation, Southwest is considering a focused network of approximately eight to 12 long-haul destinations. Jordan believes such a strategy could satisfy a significant portion of customer demand while maintaining the airline’s low-cost operating model.
The airline’s growing fleet of Boeing 737 MAX aircraft could support those ambitions. Southwest currently operates more than 300 Boeing 737-8 jets and is the launch customer for the 737-7, which is expected to receive FAA certification later this year. Both aircraft offer enough range to connect the U.S. East Coast with several European destinations.
While Jordan declined to discuss specific routes, he identified Baltimore/Washington International Airport as a potential gateway for future long-haul services. Southwest dominates the airport, holding more than 70% market share, making it a natural launch point for international growth.
Jordan said the airline wants to eliminate reasons why loyal Southwest customers might choose competing carriers for overseas travel. “Our customers love Southwest, but there are destinations we simply can’t offer today,” he said. “We want to close those gaps where it makes sense.”
Southwest currently serves more than 120 destinations across the United States, Mexico, Central America, the Caribbean, Hawaii and, most recently, Alaska. Earlier this month, the carrier inaugurated seasonal flights to Anchorage from Denver and Las Vegas, making Alaska the 43rd U.S. state in its network.
