Southwest Airlines and JetBlue rumors have been swirling all weekend. It’s not clear exactly what is going on, but some expect that there will be an announcement on Monday with markets closed for Presidents Day. Aviation watchdog JonNYC seems to know something:
so, with the above firmly in mind…
Some people say SWAPA signed an NDA then an LOA 2 days ago. They got a video from inflight leadership telling them big changes to their service procedures are coming that will require training (Put it all together it could mean […..] and/…— JonNYC (@xJonNYC) February 15, 2025
If anyone has any solid/authoritative intel on a JetBlue rumor for next week
And a Southwest rumor for next week, I’d love to get a DM from ya. No speculation, inquiries or flirting please.— JonNYC (@xJonNYC) February 14, 2025
Given rumors of Southwest potentially doing a deal with JetBlue, it’s possible that the two airlines could be announcing a partnership. They’re not the most obvious to do a tie-up, however:
- Both Southwest and JetBlue have been actively looking to add airline partners
- Southwest has just onboarded Icelandair, so they now have the capability to partner online
- Southwest hasn’t made New York work, so JetBlue could be helpful there. And both have strength in South Florida. Southwest is strong in LA where JetBlue has pulled back.
- And this would explain aligning partnership procedures that JonNYC reported on
Southwest Airlines Check-in, DCA
Another rumor – without a JetBlue component – is that Southwest could be announcing a 10% layoff.
No layoffs (strictly speaking, but it’s a little gray), for 53+ years, and after announcing a full-year profit for 2024? Thanks, Elliott!
Southwest Airlines Crew, Credit: Southwest
Southwest has historically avoided layoffs. If this rumor pans out, perhaps it will be more focused on headquarters staff than furloughs for frontline. But these aren’t ordinary times. The company has been effectively taken over by an activist shareholder. And their investment is lagging, with shares down. The airline currently has a hiring freeze in place, and a deactivated careers page with no jobs posted.
Southwest Airlines capitulated to activist investor Elliott Management. They’re cutting legroom and will be charging for seat assignments. They’re scaling back growth plans. But most importantly to align with the investor’s real objective, they are selling planes and in some cases leasing them back in order to generate cash for stock buybacks. Reducing headcount is consistent with that.
Southwest CEO Bob Jordan, Credit: Southwest Airlines
The airline clearly isn’t Southwest anymore. They probably reached the limits of their model anyway, with only a single aircraft type (Boeing 737), selling largely direct and eschewing third party platforms, and not adding the operational complexity involved in partnerships or premium products. So change may have been inevitable. But they seem to be abandoning their culture, too – cancelling employee rallies to save money, in order “to fight to return to excellent financial performance.”
Something seems to be afoot, rumors of what are swirling, and it should be interesting to watch. What do you think is most likely?