SOUTHWEST AIRLINES UNVEILS ITS "SOUTHWEST. EVEN BETTER." TRANSFORMATIONAL PLAN AT INVESTOR DAY
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~ Southwest Airlines Co. (NYSE: LUV) has announced a major transformation of its core product to better meet the evolving preferences of its customers and increase revenue opportunities. The company, known for its unique business model, has launched new commercial initiatives aimed at enhancing the customer experience while maintaining flexible policies such as free checked bags.

At an Investor Day briefing in Dallas, Southwest leaders outlined their plans for the next three years, which they believe will lead to even greater success for the company. These plans include a focus on providing more choices and comfort for customers, with the goal of driving revenue growth and returning Southwest to industry-leading profitability.

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The airline expects these changes to result in approximately $4 billion in cumulative incremental earnings before interest and taxes (EBIT) contribution by 2027. Additionally, they anticipate a return on invested capital (ROIC) of 15 percent or greater, well above their weighted average cost of capital (WACC).

In light of these promising developments, Southwest's board has approved a $2.5 billion share repurchase program. This further demonstrates the company's commitment to delivering value to its shareholders while also investing in its future success.

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