Business Wars: Can Southwest Airlines Survive? | Hard Landing | Episode 1 Summary

Hosted by David Brown | Released August 13, 2025

Introduction: The Storm Hits Southwest Airlines

The episode opens on a frigid December night in Denver, 2022, where a powerful bomb cyclone descends upon Denver International Airport, unleashing winds of up to 60 mph. Southwest Airlines, renowned for its reliability and friendly service, finds itself grappling with unprecedented disruptions. Ramp agents work tirelessly in sub-zero temperatures, de-icing planes while battling freezing conditions. By midnight, the storm has caused Southwest to delay 700 flights and cancel nearly 200, setting the stage for one of the airline's most significant crises.

[00:00] David Brown: "By midnight, when wind chills have nosedived to 40 below zero, Southwest and other airlines have delayed 700 flights and canceled nearly 200."

A Legacy of Success Under Strain

Southwest Airlines has long been celebrated as the most consistently profitable major U.S. airline, maintaining profitability through strategic cost management and a customer-friendly approach. Since its inception in 1971, Southwest built a strong brand centered on operational excellence and a unique corporate culture. However, the pandemic in 2020 marked the first loss year since 1973, and although Southwest returned to profitability in 2021, challenges persisted.

[06:45] David Brown: "Southwest remained the most consistently profitable major US airline ever since... until the pandemic arrived and cratered air travel demand."

The Impact of Rising Costs and Labor Shortages

Post-pandemic, Southwest faces escalating operational costs and a significant labor shortage. Fuel prices soar, and the general increase in operational expenses squeezes profit margins. Simultaneously, many pilots and flight attendants have left the industry or retired early, exacerbating staffing shortages. CEO Bob Jordan identifies the urgent need to hire 25,000 new employees by the end of 2023 to stabilize operations.

[17:31] Bob Jordan: "Getting staffed is the key. Right now, I would tell you we probably have 35 to 40 aircraft that we are unable to operate simply because we're unstaffed."

Operational Challenges and Technological Limitations

Southwest's outdated crew scheduling software, SkySolver, proves inadequate in handling large-scale disruptions like the 2022 storm. The lack of modern technology forces staff to manually reassign crews, leading to chaos both on the ground and in the air. This inefficiency highlights the broader issue of Southwest's resistance to technological upgrades, a factor that has increasingly put the airline at a disadvantage compared to competitors.

[35:19] Bob Jordan: "With our large fleet of airplanes and flight crews out of position in dozens of locations... we reached a decision point to significantly reduce our flying to catch up."

Union Strife and Employee Dissatisfaction

The labor shortages are compounded by growing discontent among Southwest's workforce. Flight attendants and pilots, feeling overworked and underappreciated, have begun striking for better wages and working conditions. Union leaders accuse the airline of prioritizing cost-cutting over employee well-being, contributing to the operational inefficiencies.

[37:21] Captain Casey Murray: "We work hard and we want to make sure that these inefficiencies aren't the norm and they can't be the norm for the continued survival of Southwest Airlines."

Regulatory Scrutiny and Public Backlash

The December 2022 meltdown triggers a Department of Transportation investigation, with Transportation Secretary Pete Buttigieg publicly criticizing Southwest's management and operational failures. The airline's reputation takes a severe hit as passengers remain stranded with lost luggage and canceled flights. Public apologies from CEO Bob Jordan are seen as insufficient, and mockery ensues when "Saturday Night Live" parodies Southwest's plight.

[34:46] Passenger: "It's a shocking and unacceptable level of disruption... Southwest indicating that they're actually not able to fully keep track of where their own flight crews."

Steps Toward Recovery: Investment and Modernization

In response to the crisis, Southwest commits to a $1.3 billion technology overhaul in 2023, including upgrading its crew scheduling software and investing in 30 new de-icing trucks. Additionally, the airline conducts winter operational drills and network operations center "war games" to better prepare for future disruptions. Despite these measures, skepticism remains about whether these investments will suffice to restore Southwest's operational integrity and customer trust.

[40:40] David Brown: "Southwest is spending $1.3 billion on a tech overhaul in 2023 and will spend additional millions on things like new de-icing trucks."

Conclusion: The Road Ahead for Southwest Airlines

As winter approaches, Southwest Airlines stands at a crossroads. The airline's ability to navigate through rising costs, labor shortages, and technological shortcomings will determine its future viability. With an activist investor poised to drive significant changes, the next phases of Southwest's battle to survive remain uncertain. The episode leaves listeners anticipating whether Southwest can reinvent itself and reclaim its position as a reliable and profitable airline amidst a transformed aviation landscape.

[39:18] Passenger: "You bought a Southwest ticket. You obviously don't respect yourself, so why should we?"

Outro

David Brown wraps up the episode by highlighting the critical junctures Southwest faces and teases future developments, including the impact of activist investors and ongoing operational adjustments.

Notable Quotes:

• Bob Jordan on Staffing Needs [17:31]: "Getting staffed is the key... we are just absolutely laser focused on that."

• Captain Casey Murray on Inefficiencies [37:23]: "Make sure that these inefficiencies aren't the norm..."

• Senator Ben Ray Lujan on Management [40:40]: "Are these problems a failure of technology or of Southwest's management?"

• Passenger Frustration [39:10]: "You bought a Southwest ticket. You obviously don't respect yourself, so why should we?"

Production Credits:

• Story by: Joseph Buento
• Sound Design: Josh Morales
• Fact-Checking: Gabrielle Jolais
• Voice Acting: Chloe Elmore
• Producers: Tristan Donovan, Kate Young, Emily Frost, Dave Schilling
• Executive Producers: Jenny Lauer Beckman, Marshall Louie

This summary provides an in-depth overview of the first episode of "Can Southwest Airlines Survive?" from the "Business Wars" series by Wondery, capturing the airline's historical successes, recent challenges, and the ongoing struggle to adapt in a post-pandemic world.