A Southwest Airlines commercial airliner took off from Las Vegas on February 8, 2024.
Mike Black | Reuters
Southwest Airlines The airline will end open seating and will offer seats with extra legroom on its aircraft as pressure mounts on the airline to boost revenue, leading to the biggest change to its business model in 53 years.
The airline said Thursday it plans to start selling its first flights with extra legroom next year. The airline also plans to launch overnight flights starting in February.
Southwest executives have said for years they were studying such changes, hinting in April that the airline was seriously considering allocating seats and offering more expensive seats with more legroom. The airline currently divides passengers into one of three boarding groups and assigns them a number, with passengers flocking to check-in the day before a flight. Passengers can board earlier, but if they pay a higher-priced ticket, they will get a better boarding time.
When travelers choose a competitor over Southwest, the airline found in its research that its open seating model was the top reason for their choice, the airline said in a press release outlining the changes. The company also said that 80% of customers prefer assigned seating.
“While our unique open seating model has been a part of Southwest Airlines since its inception, our thoughtful and extensive research showed it was the right choice at the right time for our customers, employees and shareholders. ,” CEO Bob Jordan said at a news conference Thursday.
The move comes after activist investor Elliott Investment Management disclosed in June a nearly $2 billion stake in the airline and called for new leadership as the airline lagged rivals. Airlines are now under greater pressure to segment their products like other airlines.
“We will adjust as customer needs change,” Jordan said at an industry event last month.
Southwest said it expects about one-third of the seats on Boeing 737 aircraft to offer “increased legroom, consistent with what industry peers offer on narrow-body aircraft.” The airline added that the cabin layout requires approval from the U.S. Federal Aviation Administration.
The Dallas-based airline has prided itself on its simple business model, generating steady profits for much of its more than five decades in the air. Jordan said last month that unassigned seats are easier to offer when planes are less full.
Analysts criticized Southwest for moving too slowly. Rival airlines offer a range of options to upsell customers, such as extra legroom seats, premium economy or business class. However, other airlines, e.g. delta, Unity and AmericanFour years ago, taking a cue from Southwest Airlines, it eliminated flight change fees on most tickets.
Southwest will provide more details about the upcoming changes at its investor day in late September.
