Southwest Airlines Announces Executive Compensation Changes

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approved changes to annual base salaries and long-term incentive opportunity targets for certain officers, including the President, Chief Executive Officer, and Vice Chairman of the Board, effective August 15, 2026. The changes were made to align executive compensation more closely with the average total direct compensation of the Company's three most relevant U.S.-based airline peers: American Airlines Group Inc., Delta Air Lines, Inc., and United Airlines Holdings, Inc.

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About Southwest Airlines Co.

Southwest Airlines Co. is a prominent player in the aviation industry, providing scheduled air transportation services across the United States and neighboring regions. Established in 1967 and headquartered in Dallas, Texas, the airline is renowned for its low-cost, no-frills business model, pioneering the point-to-point flight route system, which eliminates the need for layovers and hub connections. This efficiency allows Southwest Airlines to offer competitive fares and maintain high aircraft utilization rates. The company operates a robust fleet composed primarily of Boeing 737 aircraft, optimizing maintenance and operational synergies. Southwest is well-regarded for its customer service approach, including policies like free checked bags and no change fees, setting it apart in a market often criticized for restrictive practices. Serving a diverse clientele that includes leisure and business travelers, Southwest Airlines Co. plays a crucial role in domestic and short-haul international travel, consistently ranking as one of the largest airlines by market share in the United States. Its strategic focus on cost efficiency and customer satisfaction has made it a formidable force in the competitive airline sector.