Southwest Airlines is making significant changes to its business model after 53 years of open seating on its flights. The airline will begin offering extra legroom seats and overnight flights, starting next year. This decision comes as Southwest faces pressure to increase revenue and compete with other carriers that offer assigned seating and premium amenities.
Research by the airline showed that many customers prefer assigned seats, prompting the change. CEO Bob Jordan believes this change is necessary to better serve customers, employees, and shareholders. However, Southwest will continue to offer its popular two free checked bags policy.
The move to assigned seating is seen as a way for Southwest to stay competitive in the industry, especially after activist investor Elliott Investment Management called for new leadership due to underperformance. Southwest aims to have about a third of seats on its Boeing 737s offer extended legroom, similar to what other airlines provide.
Despite criticism from analysts for moving slowly, Southwest is making adjustments to meet the evolving needs of customers in a competitive market. The airline plans to provide more details about these changes at an investor day in September. Southwest’s decision to move away from open seating is a significant shift in its business model and reflects the airline’s commitment to adapt to changing industry dynamics.
Photo credit
www.nbcnews.com
