Southwest Airlines is Getting Rid of Open Seating
Southwest Airlines is abandoning its signature open-seating policy in favor of assigned seats. This shift will allow the budget carrier to introduce premium seating options and generate additional revenue. Additionally, Southwest will launch overnight flights for the first time, aiming to optimize aircraft utilization and improve operational efficiency.
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Southwest Airlines claims that customer demand has driven the decision to implement assigned seating and introduce overnight flights. The airline cites open seating as the primary reason customers defect to competitors. While these changes aim to improve customer satisfaction, they will also enable Southwest to generate additional revenue through premium seating options.
“The research is clear and indicates that 80% of Southwest customers, and 86% of potential customers, prefer an assigned seat,” said the airline in a statement. “By moving to an assigned seating model, Southwest expects to broaden its appeal and attract more flying from its current and future customers.”
Southwest has not provided a specific timeline for implementing these changes but indicated that further details will be shared in September.
After half a century, Southwest Airlines will abandon its signature open-seating policy in favor of assigned seats. This shift, pressured by investors seeking increased profitability, aims to compete with rivals like American, United, and Delta, who generate significant revenue from premium seating. While Southwest will maintain its free baggage policy and flight changes, the airline will introduce premium seats with more legroom in 2025. This move is part of a broader strategy to improve revenue and efficiency, including the introduction of overnight flights.
Once the industry’s profit leader, Southwest Airlines has fallen on hard times. Despite record revenue, its profit dropped by over half in the recent quarter. While the airline remains financially strong, it has faced a series of challenges. Its reliance on Boeing’s 737, once a cost advantage, has become a liability due to production and safety issues. A massive operational meltdown in late 2022, exacerbated by outdated technology, eroded consumer trust and inflicted significant financial damage. Although the airline has invested in technology upgrades, it faces intense competition and industry headwinds as it works to restore its former dominance.
What do you think of the seating policy change?
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