Business
Southwest Airlines Shifts to Assigned Seating and Premium Options
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Southwest Airlines, based in Dallas, is making a big change to how it boards passengers. After 53 years of the open seating model, the carrier announced it will now assign seats and offer premium seating on all flights.
This change is part of a new strategy aimed at enhancing the customer experience and boosting the airline’s financial performance. Southwest revealed these initiatives in a statement, emphasizing that the move responds to evolving customer preferences.
Bob Jordan, Southwest’s president and CEO, spoke about the transition back in April, calling the introduction of assigned seating a transformational shift for the airline. Jordan highlighted that while the open seating model has been a hallmark of Southwest since its beginning, their extensive research showed that this change is timely and beneficial for customers, employees, and shareholders alike.
Southwest plans to provide more details about the seating changes at its Investor Day in late September. These planned changes will also require approval from the Federal Aviation Administration.
The airline has conducted extensive testing, both live and simulations, showing that 80% of customers and 86% of potential customers prefer assigned seats. Additionally, Southwest noted that open seating was the main reason cited when customers chose to fly with competitors.
As part of this seating overhaul, Southwest anticipates that around one-third of seats across its fleet will feature extended legroom, similar to what is offered by other airlines on narrowbody aircraft.
In addition to the new seating arrangements, Southwest is embarking on a plan to operate around the clock, introducing overnight flights that will begin on Valentine’s Day 2025. Booking for these initial routes, which include Las Vegas to Baltimore and Orlando, as well as Los Angeles to Baltimore and Nashville, is already available.
These announcements come at a time when Southwest’s financial performance has faced challenges. The airline’s Revenue per Available Seat Mile, a key industry metric, dropped by 3.8% year-over-year, prompting Jordan to acknowledge the need for urgent action to improve revenue and implement long-term strategies.