Southwest exec says the free bag and assigned seating overhaul is already paying off

If Spirit Airlines’ abrupt collapse sent a warning across the travel industry, it’s that resistance to change can carry real consequences.

That reality is now shaping decisions at companies where long-standing business models are being reworked in response to shifting consumer expectations and tighter margins. Few shifts have been more visible than at Southwest Airlines, where recent changes—ending its long-held policy of two free checked bags and moving away from open seating—cut to the core of what the airline has long been known for.

But speaking at Fortune’s COO Summit on Tuesday, Southwest’s EVP and Chief Customer & Brand Officer Tony Roach acknowledged the magnitude of the changes, comparing the shift away from open seating to “changing the engine in the car.” He argued the moves were necessary for the airline’s long-term survival—not a departure from its identity.

“We are a brand that’...