Southwest Airlines to Transition to Assigned Seating Amid Financial Struggles

Southwest Airlines announced on Thursday that it will shift from its long-standing free-for-all seating arrangement to a system of assigned seats. The decision comes after a survey revealed that 80% of customers prefer assigned seating. This change not only aims to enhance customer satisfaction but also allows the airline to introduce new premium seating options, potentially increasing revenue. The move marks a significant departure from the company's original business model, which emphasized open boarding as a way to maximize flight efficiency. Historically, Southwest's open-boarding policy distinguished it from competitors, allowing the airline to operate more flights daily. However, the company has faced financial challenges in recent years, struggling to compete with major airlines like American, United, and Delta, which have successfully monetized premium seating options. The shift to assigned seating is seen as a necessary adaptation to remain competitive in a changing market. Customer reactions to the announcement have been mixed. While some frequent flyers appreciated the spontaneity and social aspect of open seating, others expressed relief at the prospect of assigned seats, citing anxiety over securing a good spot. Many customers noted that the previous system could be stressful, particularly for those unable to arrive at the gate early due to traffic or long security lines. As Southwest navigates this transition, industry experts suggest that the airline may face pressure from activist investors to explore additional revenue streams, such as charging for checked bags, to bolster its financial standing in a competitive landscape.