The Daily Populous Thursday July 25th, 2024 evening edition
Authored by cnbc.com and submitted by subaru5555rallymax

Southwest Airlines is ending open seating and will offer extra legroom seats on its airplanes as mounting pressure on the carrier to increase revenue prompts the biggest changes to its business model in its 53 years of flying.

The airline plans to start selling the first flights that will offer extra legroom next year, it said Thursday. It also plans to begin overnight flights, starting in February.

Southwest executives have said for years that they were studying such changes and hinted in April that the airline was seriously considering assigning seats and offering extra legroom options. The airline currently puts customers in one of three boarding groups and assigns a number, setting off a mad dash to check in a day before the flight. Customers can get earlier boarding though if they pay for a higher-priced ticket, they'll get a better boarding slot.

When travelers choose a competitor over Southwest, the airline found in its research that its open seating model was the No. 1 reason for that choice, the carrier said in a release that outlined the changes. It also said 80% of its own customers prefer an assigned seat.

"Although our unique open seating model has been a part of Southwest Airlines since our inception, our thoughtful and extensive research makes it clear this is the right choice — at the right time — for our Customers, our People, and our Shareholders," CEO Bob Jordan said in a news release Thursday.

Southwest did not, however, unveil any changes to its beloved two free checked bags policy.

The airline is under even more pressure now to segment its product like other airlines after activist investor Elliott Investment Management disclosed in June a nearly $2 billion stake in Southwest and called for new leadership as the carrier underperformed competitors.

Southwest reported second-quarter earnings Thursday that showed profit down 46%.

-OptimisticNihilism- on July 25th, 2024 at 12:08 UTC »

[The airline is under even more pressure now to segment its product like other airlines after activist investor Elliott Investment Management disclosed in June a nearly $2 billion stake in the airline and called for new leadership as the airline underperformed competitors.

“We will adapt as our customers’ needs adapt,”]

I think he meant to say for his investors.

arctander on July 25th, 2024 at 11:39 UTC »

Perhaps they ought to create an incentive to sit in the middle seat instead.

campelm on July 25th, 2024 at 11:00 UTC »

> Southwest plans to offer pricier seats with extra legroom and end open seating on its planes.

Gee I wonder where that leg room will come from? It's a mystery