Southwest Airlines is to radically change its onboard experience by abandoning its iconic open seating policy as part of a plan to improve its lagging financial performance, the Dallas-based airline confirmed on Thursday.
Under pressure from activist investor Elliott Investment Management, which took a stake in the carrier earlier this year in an attempt to oust the airline’s leadership team, Southwest is introducing assigned seating and premium seating options for the first time in its more than 50-year history.
Southwest Airlines hasn’t concealed the fact that the new seating options are designed to increase revenue opportunities, but the airline also says that switching to assigned seating is something that customers are actually begging for.
In fact, research conducted by the airline revealed that 80% of existing Southwest customers say they prefer assigned seating, and 86% of potential customers want to have an assigned seat.
“When a Customer elects to stop flying with Southwest and chooses a competitor, open seating is cited as the number one reason for the change,” the airline explained on Thursday.
“By moving to an assigned seating model, Southwest expects to broaden its appeal and attract more flying from its current and future Customers.”
Southwest appears to have made its announcement early in an attempt to dampen calls from some shareholders to oust the airline’s leadership team, so many of the details of its new seating policy are still in the works.
For example, Southwest says it will also offer extra-legroom seats for the first time in its history, but specific cabin layout details are still in design. That being said, Southwest expects roughly one-third of all seats to offer extra legroom, which would bring the carrier in line with its industry peers.
The addition of extra legroom seats has been anticipated for some time, given that Southwest recently picked out a new type of slim-line seat without adding any additional rows to its planes.
In an attempt to offer the kind of premium experiences that customers are craving, Southwest is also working to improve its onboard Wi-Fi and is in the process of installing in-seat power across its fleet.
“Moving to assigned seating and offering premium legroom options will be a transformational change that cuts across almost all aspects of the Company,” explained embattled chief executive Bob Jordan on Thursday.
“Although our unique open seating model has been a part of Southwest Airlines since our inception, our thoughtful and extensive research makes it clear this is the right choice— at the right time—for our Customers, our People, and our Shareholders”.
Jordan has resisted calls to step aside following Elliott’s decision to acquire a big stake in Southwest, but the decision to announce radical passenger experience changes months before Southwest’s annual investor day is a clear sign of how much pressure he is under.
As it stands, there are no details on how much extra legroom seating might cost or what other fee-based services Southwest might add to its seating options.
What we do know, however, is that Southwest will finally introduce red-eye flights from Valentine’s Day 2025, as part of a plan to further increase revenues and realize cost savings.
The rollout of overnight flying will be slow, and Southwest intends to launch red-eye flights in just five markets: Las Vegas to Baltimore and Orlando; Los Angeles to Baltimore and Nashville; and Phoenix to Baltimore.
With assigned seating does that mean the end of the “miracle flights”?
Maybe… but it really should be a crime to make fraudulent requests for disability accommodation. (the liars should also face lifetime bans.)
Actual consequences would get rid of Jetbridge Jesus for once and for all.
No need for a felony though – a misdemeanor would suffice for this.