Southwest Airlines announced significant changes to its business model, including ending its open seating policy and introducing extra legroom seats, as part of efforts to increase revenue. Starting next year, the airline plans to offer flights with extra legroom seats and introduce overnight flights beginning in February. This move marks a shift in Southwest’s 53-year-old approach, which has traditionally included open seating.
Southwest’s decision follows extensive research indicating that 80% of its customers prefer assigned seating, and that the lack of this option was the top reason travelers chose competitors. The airline’s CEO, Bob Jordan, stated that the changes are aimed at meeting customer preferences and enhancing shareholder value. Despite the adjustments, Southwest will maintain its popular policy of allowing two free checked bags per passenger.
The airline faces pressure from activist investor Elliott Investment Management, which acquired a nearly $2 billion stake in the company and has called for new leadership. Southwest plans to offer “extended legroom” on about a third of the seats in its Boeing 737 fleet, aligning with industry standards for narrowbody aircraft. The changes are subject to approval by the Federal Aviation Administration.
