Southwest Airlines to Revamp Seating Policy Amid Revenue Pressures

Southwest Airlines has announced significant changes to its business model, including the end of its open seating policy and the introduction of extra legroom seats. This decision comes as the airline faces increasing pressure to boost revenue and adapt to customer preferences. Starting next year, Southwest will begin selling flights that feature these extra legroom options, alongside plans to launch overnight flights in February. For years, Southwest executives have hinted at potential changes to their seating arrangements, with recent research indicating that the open seating model has been a major factor driving customers to competitors. The airline's current boarding process, which involves grouping customers and assigning numbers, has often led to chaotic check-in experiences. Notably, 80% of Southwest's customers have expressed a preference for assigned seating, prompting the airline to reconsider its long-standing policy. CEO Bob Jordan emphasized the importance of these changes, stating that they are based on extensive research and are designed to benefit customers, employees, and shareholders alike. Despite these adjustments, Southwest has maintained its policy of allowing two free checked bags, which remains a popular feature among travelers. The airline's shift comes in the wake of pressure from activist investor Elliott Investment Management, which acquired a nearly $2 billion stake in Southwest and has called for leadership changes due to the airline's underperformance compared to its rivals. Jordan has acknowledged the need for adaptation in response to evolving customer demands, as analysts have criticized the airline for its slow response to market changes.