As airlines across the industry expand their fee structures, Southwest Airlines (LUV) is taking a unique approach to its transformation strategy. CEO Bob Jordan joins Morning Brief to explain how the company's plans prioritize customer preferences and needs.

Jordan emphasizes that Southwest's evolution is driven by customer demand. He points to services like assigned seating and premium amenities such as extra legroom as features passengers are willing to pay for. Jordan also highlights upcoming initiatives, including Getaways by Southwest and strategic mergers, which he expects will boost profit margins.

"It's not fees for things like bags. It's revenues that come because our customers want to pay for these new services. So it's really a win-win," Jordan explains to Yahoo Finance.

Addressing the airline's current transformation efforts, Jordan acknowledges that Southwest is "changing very fundamental things," including its boarding process. However, he emphasizes that these changes aim to strengthen the Southwest brand and better serve its customers' evolving preferences.

"Again, I keep going back to the number one thing you need to do is understand your customer. Understand your customer five and ten years from now, and meet their needs," he tells Yahoo Finance.

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This post was written by Angel Smith