Southwest Airlines Announces Shift to Assigned Seating and Premium Options
Southwest Airlines is making a major change to its traditional business model by shifting to assigned seating and offering premium seating with extra legroom. This announcement comes on the heels of the airline reporting second-quarter results that beat expectations, thanks to a summer travel boom.
The decision to move to assigned seating comes after research showed that 80% of current customers and 86% of potential customers preferred this option. Southwest acknowledged that open seating was the number one reason customers cited for switching to a competitor. The changes are expected to be implemented soon, with more details to come in late September.
This shift marks a significant departure from Southwest’s long-standing open seating model and reflects the evolving landscape of the airline industry. The company’s president and CEO, Bob Jordan, described the move as a “transformational change” that will impact all aspects of the company.
In addition to the seating changes, Southwest also announced the introduction of overnight flights in five initial nonstop markets. These flights are already on sale and will begin operating on Valentine’s Day.
Despite resistance to altering its seating procedures in the past, Southwest’s decision to make these changes comes amid pressure from an activist investor and significant financial losses in the first quarter. The airline has also faced safety concerns this year, but it remains committed to offering free checked bags, despite proposals to eliminate this policy.
Overall, these changes represent a significant shift for Southwest Airlines as it seeks to adapt to a changing industry landscape and better meet the needs of its customers, employees, and shareholders.