Southwest Airlines To Introduce Assigned Seating, Overnight Flights

Southwest Airlines (LUV) is abandoning its longtime argumentation of unfastened seating, announcing plans Thursday "to delegate seats and connection premium seating options to meet evolving Customer preferences and summation gross opportunities."

The hose has been nether unit from activistic investors for illustration Elliott Investment Management, which amassed a ample stake successful nan institution past month and has pressed Southwest to attraction much connected revenue-generating policies.

Southwest To Introduce Assigned Seating; Overnight Flights Coming successful 2025

"Although our unsocial unfastened seating exemplary has been a portion of Southwest Airlines since our inception, our thoughtful and extended investigation makes it clear this is nan correct choice—at nan correct time—for our Customers, our People, and our Shareholders," Southwest Chief Executive Officer (CEO) Bob Jordan said.

The institution said that its surveys person shown that 80% of Southwest customers would for illustration an assigned seat, and importantly, 86% of imaginable customers said nan same, indicating nan move could broaden Southwest's customer base. Southwest besides said nan unfastened seating argumentation was nan astir often cited logic by customers who decided to extremity flying Southwest and take a competitor instead.

The hose is besides shifting to go operational for 24 hours a day, and said it plans to commencement trading tickets for overnight flights, opening successful February 2025 pinch a constricted number of first routes.

Southwest has been fending disconnected unit from Elliott to make changes astatine nan executive level, recently adopting a "poison pill" scheme to forestall nan money from acquiring a larger stake. Elliott has criticized nan company's "stubborn unwillingness" to germinate and support gait pinch different ample airlines.

Southwest shares roseate 4% to $27.69 arsenic of astir 11:15 a.m. Thursday, arsenic markets reacted to Thursday's announcement on pinch its second-quarter net report, which saw nan bearer hit expectations but pass of "cost pressures for nan remainder of nan year."