08:11 AM EDT, 09/26/2024 (MT Newswires) -- Southwest Airlines ( LUV ) on Thursday unveiled a three-year plan "to drive revenue growth and return the carrier to industry-leading profitability."

Southwest Airlines ( LUV ) said it is planning to introduce assigned seating in the second half of 2025 to "broaden its consumer appeal and boost demand." The carrier plans to introduce premium seating with extra legroom as well as to continue its "bags fly free" policy. Southwest Airlines ( LUV ) said it intends to expand its international reach through partnerships, starting with Icelandair in 2025 through Baltimore-Washington International Airport. The airline also plans to start offering vacation packages under the "Getaways by Southwest ( LUV )" brand and to improve its Rapid Rewards program.

Southwest Airlines ( LUV ) expects to achieve an additional $4 billion in cumulative incremental earnings before interest and taxes, or EBIT, by 2027. The carrier aims for a return on invested capital of 15% or greater by the same year. Southwest ( LUV ) projects $500 million in run-rate cost savings by 2027.

The company said it plans to monetize its fleet order book and modernize its fleet, targeting an average fleet age of five years by 2031, which would help reduce capital expenditures on aircraft to around $500 million through 2027.

Southwest Airlines ( LUV ) also said its board of directors approved a $2.5 billion share repurchase program.

Shares were up more than 4% in recent premarket activity.

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