Southwest Airlines Ends Open-Seat Boarding Tradition, Embraces Assigned Seating

Southwest Airlines, a pioneer in the low-fare, no-frills airline model, announced on Thursday that it will end its five-decade-long tradition of open-seat boarding, transitioning to assigned seating. This significant change marks a departure from the airline’s distinct and successful model that has been a cornerstone of its brand identity.

Southwest revealed that the decision to implement assigned seating comes in response to customer preferences, with 80% of passengers expressing a desire for assigned seats. Additionally, this shift allows the airline to introduce premium seats, providing opportunities to generate additional revenue. This move aligns Southwest more closely with other airlines, a contrast to founder Herb Kelleher’s philosophy that unconventional methods kept the company thriving while others failed.

Since its inception in 1971, Southwest’s open-seat boarding process has been integral to its “egalitarian operating philosophy.” The airline, known for its no bag fees and absence of first-class cabins, revolutionized the industry by making air travel affordable and accessible to a broader audience.

Under the traditional open seating system, passengers were assigned a boarding group and position when they checked in. They would then line up and choose any available seat once on the plane. This method allowed Southwest to expedite the boarding process, resulting in more on-time departures and cost savings, a strategy that contributed to the airline’s efficiency and competitive edge.

Despite the industry’s shift towards assigned seating over the years, Southwest maintained its unique boarding process, which became a beloved aspect of its brand. Former CEO Gary Kelly emphasized in 2007 that open seating was a strong brand component that offered passengers freedom of choice.

The change to assigned seating reflects evolving customer preferences and challenges in Southwest’s traditional business model. The airline has struggled financially in recent years and faced limitations in charging for extra legroom and other seating perks, unlike its competitors.

The announcement sparked a mix of reactions from Southwest’s loyal customer base. Some expressed disappointment, reminiscing about the unique boarding experience and its role in differentiating Southwest from other airlines. Others welcomed the change, citing the convenience of having an assigned seat and reducing the anxiety associated with open seating.

Sandy Wolfe, a frequent Southwest flyer, voiced her concern about losing the airline’s unique charm and the potential for increased costs for preferred seating. However, she acknowledged that assigned seating could alleviate anxiety for some passengers.

This strategic move comes at a critical time for Southwest, as it faces pressure from activist investors at Elliot Investment Management, who have been advocating for management changes and improved profitability. Despite a 51% drop in adjusted profit last quarter, Southwest reported record revenue, underscoring the need for strategic adjustments.

Southwest also faces competition from major carriers like American, United, and Delta, which generate significant revenue from premium seating, and ultra-low-cost carriers such as Spirit and Frontier, which charge for various services. Southwest’s CEO, Bob Jordan, reassured investors that the airline has no plans to start charging for the first two checked bags, although activist investors might push for such changes to boost profits.

William McGee, Senior Fellow for aviation and travel at the American Economic Liberties Project, highlighted Southwest’s longstanding policy against charging for the first two checked bags and ticket change fees. He suggested that the influence of activist investors could lead to the introduction of more fees, aligning Southwest’s practices with those of other airlines.

As Southwest Airlines transitions to assigned seating, it marks the end of an era and a strategic shift aimed at meeting customer preferences and improving profitability in a highly competitive industry.