SOUTHWEST AIRLINES ANNOUNCES FUTURE PARTNERSHIP WITH CHINA AIRLINES

Rhea-AI Summary

Southwest Airlines (NYSE: LUV) has announced plans to form its first trans-Pacific airline partnership with Taiwan-based China Airlines in early 2026. The interline agreement, expected to be available for bookings later in 2025, will create seamless connections through shared gateways in California. As America's largest domestic carrier and the leading airline in California, Southwest will leverage China Airlines' gateway operations in Los Angeles, San Francisco, Seattle, and Ontario to expand connectivity options. This partnership follows Southwest's recent collaboration with Icelandair, which currently connects passengers between the U.S. and Europe through various gateway airports. The Icelandair partnership will expand on July 14, 2025, to include Orlando, Pittsburgh, and Raleigh-Durham as additional connection points.

Positive

• First trans-Pacific airline partnership for Southwest Airlines, expanding international reach
• Access to multiple gateway cities in California through China Airlines' network
• Leverages Southwest's position as largest domestic carrier in the U.S. and leading airline in California
• Expansion of existing international partnership strategy following successful Icelandair collaboration

Negative

• None.

Insights

Airline Industry Strategist

Southwest's new China Airlines partnership marks strategic expansion into trans-Pacific markets without capital-intensive international fleet investments.

This interline agreement with Taiwan-based China Airlines represents a significant strategic evolution for Southwest Airlines. Historically, Southwest has maintained a primarily domestic focus with a point-to-point business model, avoiding the complexity of international long-haul operations and interlining agreements. This partnership, alongside their recent Icelandair agreement, signals a calculated shift in Southwest's growth strategy.

Rather than investing billions in wide-body aircraft suitable for trans-Pacific routes, Southwest is leveraging its dominant position in California (their largest market) to feed passengers to China Airlines' existing routes through Los Angeles, San Francisco, and other California gateways. This approach allows Southwest to extend their network reach into Asia without the capital intensity and operational complexity of operating their own long-haul international service.

For investors, this represents a lower-risk approach to international expansion that aligns with Southwest's historically conservative financial management. The company gains access to revenue opportunities from connecting traffic while maintaining their operational focus on short and medium-haul markets with their Boeing 737 fleet.

The timing is strategic as post-pandemic trans-Pacific travel continues recovering, with particularly strong VFR (visiting friends and relatives) traffic between the US and Taiwan. By partnering with IATA and pursuing multiple international partnerships (as hinted by COO Watterson's comments), Southwest is methodically building a global connectivity strategy that complements rather than disrupts their core business model.

Interline agreement to connect America's largest domestic carrier and Taiwan-based China Airlines through shared gateways in California, creating first trans-Pacific airline partnership for Southwest Airlines 

NEW DELHI, June 2, 2025 /PRNewswire/ -- Southwest Airlines Co. (NYSE: LUV) and China Airlines Group, a Taiwan-based carrier, are in discussions to create an interline partnership in early 2026, with published connections expected to go on sale later this year. Executive Leadership from both carriers met this week at the International Air Transport Association (IATA) 2025 Annual General Meeting (AGM) in India to jointly announce the first trans-Pacific airline partnership for Southwest Airlines^®. 

"We're on a journey to bring more choices to our Customers. This initial work to partner with Taiwan-based China Airlines would allow for seamless trans-Pacific journeys across the Southwest network, furthering the reach of our Vision and Purpose—to connect People with important moments in their lives," said Andrew Watterson, Chief Operating Officer at Southwest Airlines. "As the largest carrier of domestic Passengers in the United States, we also carry more people to, from, and within California than any other airline¹ and expect Southwest Customers could benefit immediately from having access to connections overseas through China Airlines." 

"Growing our long-haul network always has been China Airlines' long-term plan. As we expand our gateway operations in Los Angeles, San Francisco, and Seattle, as well as Ontario, California, we are pleased to include Southwest as one of our partners with its unique network that further expands North American connection opportunities into the Midwest and toward the East Coast." said Kevin Chen, President at China Airlines. "In the future, customers may book China Airlines and Southwest Airlines itineraries under one ticket and enjoy seamless travel experiences. We believe this complementary cooperation will enhance travel options for our customers and improve connectivity to Asia for travelers in the domestic U.S. market." 

Southwest^® is attending its first AGM since becoming a member carrier earlier this year. "We've found great interest globally in potential partnerships with Southwest and continue discussions here in New Delhi with several like-minded carriers attracted to our consistent Reliability, friendly brand, and unmatched network in the United States," Watterson said. Earlier this year, Southwest launched a partnership with Icelandair that now connects Customers traveling between the U.S. and Europe on dual-carrier itineraries through gateway airports Baltimore/Washington, Denver, and Nashville. Beginning July 14, 2025, Icelandair and Southwest will add connecting service through Orlando, Pittsburgh, and Raleigh-Durham, providing more access between Europe and cities across the extensive Southwest Airlines network.  

About China Airlines (CAL)
China Airlines (CAL) was founded in 1959. The Taiwan-based carrier now employs more than 10,000 people worldwide and the Group's fleet has grown to 111 aircraft and strives to become the leading airline in the Asia-Pacific and fly worldwide by providing every traveler with the utmost flying experience. 

China Airlines continuously delivers a safe, high-quality, eco-friendly, and innovative flying experience, ensuring a comfortable journey and peace of mind for travelers and creating more wonderful moments through flying. As the leading air cargo carrier in the Taiwanese market, China Airlines Cargo Services provide consignors with a reliable, convenient transportation service that is always being improved. 

Learn more by visiting www.China-Airlines.com. 

About Southwest Airlines Co.  
Southwest Airlines Co. operates one of the world's most admired and awarded airlines, offering its one-of-a-kind value and Hospitality at 117 airports across 11 countries. Southwest took flight in 1971 to democratize the sky through friendly, reliable, and low-cost air travel and now carries more air travelers flying nonstop within the United States than any other airline¹. By empowering its more than 71,000² People to deliver unparalleled Hospitality, the maverick airline cherishes a passionate loyalty among more than 140 million Customers carried in 2024. Southwest leverages a unique legacy and mission to serve communities around the world including harnessing the power of its People and Purpose to put communities at the Heart of its success. Learn more by visiting Southwest.com/citizenship. 

¹Based on U.S. Dept. of Transportation quarterly Airline Origin & Destination Survey since Q1 2021 
²Fulltime-equivalent active Employees    

 

View original content:https://www.prnewswire.com/news-releases/southwest-airlines-announces-future-partnership-with-china-airlines-302470271.html

SOURCE Southwest Airlines Co.

FAQ

When will the Southwest Airlines and China Airlines partnership begin?

The partnership is expected to begin in early 2026, with bookings becoming available later in 2025.

Which airports will serve as gateways for the Southwest-China Airlines partnership?

The partnership will operate through shared gateways in Los Angeles, San Francisco, Seattle, and Ontario, California.

What type of agreement is LUV forming with China Airlines?

Southwest Airlines is forming an interline partnership that will allow customers to book connecting flights between both airlines under a single ticket.

How does this partnership benefit Southwest Airlines (LUV) customers?

The partnership will provide Southwest customers with seamless trans-Pacific travel options and expanded connectivity to Asia through China Airlines' network.

What other international airline partnerships does Southwest Airlines have?

Southwest has a partnership with Icelandair connecting the U.S. and Europe through multiple gateway airports, including Baltimore/Washington, Denver, Nashville, and soon Orlando, Pittsburgh, and Raleigh-Durham.