Morning Business Report: Southwest weighs policy changes as Family Dollar closes stores

Southwest Airlines may be reconsidering part of its controversial “Customer of Size” policy following backlash from travelers.

(LILAMAX)- Southwest Airlines may be reconsidering part of its controversial “Customer of Size” policy following backlash from travelers.

In a statement to Newsweek, a Southwest spokesperson confirmed changes are being considered. The airline says it is working to create a “more consistent and seamless experience” for customers who require an additional seat.

Meanwhile, another major discount retailer is shrinking its footprint across the country.

Family Dollar has closed roughly 350 stores nationwide over the past 10 months as parent company Dollar Tree continues a broader downsizing effort. The company has said more than 1,000 locations could eventually be eliminated as part of the restructuring plan.

On Wall Street, the Dow closed at another record high. Oil prices moved lower amid optimism surrounding a possible truce involving Iran.

Mortgage rates also climbed higher this week. The average interest rate for a 30-year fixed-rate mortgage rose to 6.65%, marking the highest level since August. Applications for mortgages to purchase homes dipped slightly for the week and remained just 5% higher than the same time one year ago. Refinance applications accounted for 38% of total applications, the lowest share since June 2025.

Walmart is also rolling out a new push in its home department. The retailer introduced Mainstays Kids, its first new home brand in five years. Walmart says the collection was developed with direct feedback from families and children looking for more personalized and affordable room options.