Southwest Airlines will launch its assigned seating flights on January 27, with tickets available from July 29. This marks the end of its open seating policy, a hallmark of the airline for over 50 years, which also included two free checked bags. These changes are part of Southwest's strategy to find new revenue streams to compete with more profitable airlines.
Southwest aims to boost its earnings before interest, taxes, depreciation, and amortization (EBITDA) by $800 million this year and $1.7 billion by 2026. The airline initially announced the policy change a year ago without a set date. This shift is part of a broader overhaul of its business model, including charging for checked bags and introducing new fare types. Top-tier customers will be exempt from many new fees.
To maintain boarding efficiency, Southwest has tested the new policies with computer models and live trials. The new boarding process will feature eight groups based on seat selection, membership status, and other factors. The most loyal and high-spending customers will board first, but seat location will also influence the sequence.
Southwest has reconfigured about 25% of its Boeing fleet to include extra legroom seats. While these seats are not yet for sale, priority boarding is offered to increase the chance of securing them.
