What CEOs Are Saying: Southwest, United, and American Airlines

Let's check in on the state of the airline industry courtesy of Morgan Stanley’s annual Laguna Conference.

It’s the end of an era: On January 27, 2026, Southwest Airlines’ passengers will be assigned seats.

The death of open seating takes away a differentiator many customers loved about Southwest. The simplicity and impartiality of the system fit the airline’s friendly vibe, and there was even more backlash when Southwest started charging for checked bags.

CEO Bob Jordan (read my interview with him below, done on his first day as CEO) was emphatic that staff was “excited” and that this was a necessary change for the airline.

Bob Jordan Takes Flight

Southwest Airlines CEO Bob Jordan

That move says a lot about where the airline business is headed. The big carriers are no longer competing mainly on cheap fares and lots of flights. They are trying to reshape themselves around things like loyalty programs and premium seats, hoping to see more reliable profits.

Three of the major U.S. airlines (United, Southwest, and American) each presented last week at Morgan Stanley’s annual Laguna Conference. Their executives talked about how they plan to earn more money per passenger, what kind of industry they see emerging, and how they’re trying to run their companies differently. Here’s what stood out.

Business Models: Where the airlines make money now

United’s CFO Michael Leskinen said the industry is shifting away from being a pure commodity.