Southwest Airlines is making the biggest policy changes in its more than 50-year history. For the first time, Southwest is ditching its open seating policy and moving to assigned seating.
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The airline will also start selling seats with extra legroom and start offering overnight “red-eye” flights. Southwest said adding those flights will improve efficiency by using each plane more.
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Southwest said it is making the changes customers want. The airline said the biggest reason customers switch to other airlines is unhappiness over open seating. The changes will also help the company boost its revenue as it tries to keep up with competitors.
Southwest did not say when these seating changes will take effect. However, the airline said it expects to share more details at an investor presentation in September 2024.
Shares of Southwest were down 4% in premarket trading after the announcement, but rebounded as the markets opened.
[KARAH RUCKER]
SOUTHWEST AIRLINES IS MAKING THE BIGGEST CHANGES IN ITS MORE THAN 50-YEAR HISTORY.
FOR THE FIRST TIME – IT’S MOVING TO ASSIGNED SEATING. AND DITCHING ITS OPEN SEATING POLICY.
IT’LL ALSO START SELLING SEATS WITH EXTRA LEGROOM… AND START OFFERING OVERNIGHT “RED-EYE” FLIGHTS.
SOUTHWEST SAID IT’S MAKING THE CHANGES CUSTOMERS WANT – SAYING THE BIGGEST REASON THEY SWITCH TO OTHER AIRLINES IS UNHAPPINESS OVER OPEN SEATING.
THE CHANGES WILL ALSO HELP THE COMPANY BOOST ITS REVENUE AS IT TRIES TO KEEP UP WITH COMPETITORS.
SOUTHWEST DIDN’T SAY *WHEN* THESE CHANGES WILL TAKE EFFECT – BUT IT EXPECTS TO SHARE MORE DETAILS AT AN INVESTOR PRESENTATION IN SEPTEMBER.
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