Southwest Airlines Announces Operational Overhaul, Including End to Open Seating

Southwest Airlines is undergoing a significant transformation to align with changing consumer preferences and improve profitability. The three-year strategic plan, known as “Southwest. Even Better,” includes the introduction of assigned seating and premium options. CEO Bob Jordan unveiled these changes at an Investor Day event in Dallas on Sept. 26, emphasizing the company’s commitment to enhancing the customer experience, financial performance, and shareholder value.

One of the most notable changes is the introduction of assigned seating, a departure from Southwest’s traditional open-seating system. This shift comes in response to customer feedback, with internal surveys indicating a preference for assigned seating among 80 percent of Southwest customers and 86 percent of passengers from other airlines. The new seating arrangement will be implemented starting in late 2025, with full implementation expected by early 2026.

In addition to assigned seating, Southwest is introducing premium seating options that offer extra legroom for a premium fare. These changes aim to cater to the business travel market while increasing per-passenger revenue. The airline plans to maintain its “bags fly free” policy, a key feature that sets Southwest apart from competitors and has contributed to its loyal customer base.

As part of the transformation plan, Southwest is also expanding its global footprint through partnerships with international carriers. Icelandair will be the first partner, with Southwest flights connecting through Baltimore–Washington International Airport from 2025. The airline is set to announce additional international partnerships in the future.

Operational improvements are a focus for Southwest, with plans to introduce redeye flights in key markets to maximize aircraft utilization and reduce turnaround times. These efficiency measures are part of the airline’s strategy to increase productivity without adding new planes to the fleet.

Southwest’s transformation comes amid pressure from activist hedge fund Elliott Investment Management, which has called for leadership changes and a review of the airline’s business model. Despite this, Southwest remains committed to its transformation plan and defending its current leadership. The board’s approval of a $2.5 billion share-repurchase program further signals confidence in the company’s strategic direction. Please rewrite this sentence.

Source link