Southwest Airlines — Key Facts
| Founded | 1967 (as Air Southwest Co.) |
| Stock Ticker | NYSE: LUV |
| Headquarters | Dallas, Texas, USA |
| Founders | Herb Kelleher & Rollin King |
| CEO | Bob Jordan |
| Fleet | 700+ Boeing 737 aircraft |
| Annual Passengers | ~170+ million (largest US domestic carrier) |
Southwest Airlines is the largest domestic airline in the United States by number of passengers carried and a pioneer of the low-cost carrier (LCC) model. Founded in Texas, Southwest built its brand around low fares, no fees for checked bags, no seat assignments, and an employee-first culture that became a business school case study in organizational management and customer service.
Who Owns Southwest Airlines?
Southwest Airlines is a publicly traded company listed on the New York Stock Exchange under the ticker NYSE: LUV (named after its home base at Dallas Love Field). The company is owned by its public shareholders — no single individual, family, or entity holds a controlling stake. The largest institutional shareholders are major index fund managers including Vanguard Group, BlackRock, and State Street Global Advisors. Southwest’s founders Herb Kelleher (who passed away in 2019) and Rollin King no longer hold significant or controlling positions. In 2024, activist investor Elliott Investment Management disclosed a large stake in Southwest and pushed for leadership and strategic changes.
History and Background
Southwest Airlines was incorporated in 1967 as Air Southwest Co. by Herb Kelleher and Rollin King. It began flying in June 1971 between Dallas, Houston, and San Antonio — three Texas cities — following a famous legal battle with competing airlines who tried to prevent it from launching. Southwest pioneered the “point-to-point” route model rather than the hub-and-spoke system used by legacy carriers, allowing faster turnarounds and lower operating costs. The airline’s stock ticker “LUV” reflects its original Love Field home airport in Dallas. Southwest has never merged with another airline — a rare distinction in US aviation history.
Business Model and Culture
Southwest is famous for its employee-centric culture, believing that happy employees create happy customers. It has one of the strongest records for low involuntary employee turnover in the airline industry. Operationally, Southwest’s exclusive use of one aircraft type — the Boeing 737 — simplifies training, maintenance, and scheduling. Its “Bags Fly Free” and “No Change Fees” policies, combined with its Rapid Rewards loyalty program, have been central to its brand differentiation.