Southwest Airlines Ends Open Seating Policy, Introduces Assigned Seats and Red-Eye Flights

Southwest Airlines is making a historic shift in its seating policy, moving away from its long-standing open seating arrangement to a new assigned seating system. This change, which marks the first time in the airline’s history, aims to address customer feedback and enhance revenue opportunities by allowing for premium seat pricing.

Additionally, Southwest will introduce overnight “red-eye” flights, designed to optimize aircraft usage and improve operational efficiency. This development represents a significant shift for the airline, which has traditionally focused on low-cost, flexible fare options.

According to Southwest, customer demand for assigned seating was a major driver behind this decision. Research indicated that 80% of current customers and 86% of potential customers prefer assigned seats. The airline anticipates that the new seating policy will attract more travellers and increase the overall appeal.

Details regarding the exact implementation timeline for the assigned seating and red-eye flights are still pending, with further announcements expected in September. This move comes as Southwest faces competitive pressure from major carriers like American, United, and Delta, which generate substantial revenue from premium seating options.

Southwest’s decision to shift from its open seating policy aligns with its broader efforts to remain competitive in a challenging industry landscape. The airline has faced increased competition from ultra-low-cost carriers such as Spirit and Frontier, as well as significant financial pressures, including rising labor costs and fuel prices.

Despite its historical profitability, Southwest reported a 51% drop in adjusted profit to $370 million last quarter, despite record revenue. The airline’s stock fell over 4% in premarket trading following the announcement.

The new seating policy and the introduction of red-eye flights are expected to be rolled out by 2025, following necessary aircraft reconfigurations. Southwest has not yet addressed whether it will revise its baggage or change fee policies as part of these changes.

Southwest, known for its low-cost structure and free checked baggage policy, will also need to navigate ongoing operational challenges. Recent incidents, including a significant service meltdown in December 2022, have impacted its reputation. The airline has faced scrutiny from the Federal Aviation Administration (FAA) and is working closely with the agency to address safety concerns.

As Southwest adapts to these changes, the airline remains focused on enhancing its service offerings and maintaining its competitive edge in the evolving airline industry.