Southwest Airlines passengers will fly in assigned seats for the first time on Jan. 27, the carrier told CNBC. Customers can start buying tickets with assigned seats on July 29.
The move ends more than half a century of open seating on the airline, a policy that has set it apart from rivals for decades — along with two free checked bags. Both things are changing as Southwest’s leaders seek new revenue streams to keep up with more profitable rivals.
Southwest said in March that its host of initiatives would add $800 million to earnings before interest and taxes this year and $1.7 billion in 2026.
The airline first announced it would end its open seating a year ago, but it had yet to set a date.
The changes are part of Southwest’s massive overhaul of its business model. The carrier in March also said it would start charging many customers to check bags and announced new fare types this spring. Top-tier customers are exempt from many of the new restrictions and fees.
Southwest used computer models and live tests to ensure the new policies wouldn’t slow down boarding and would get planes back in the the money-making air quickly.
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Author: Dillon B
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