Southwest Airlines is getting rid of open seating model, launches red-eye flights

Dallas-based Southwest Airlines announced the end of its open seating model, one of the airline’s most unique policies.

For more than 50 years, Southwest has been known for open seats on its aircraft, but now will lean into models for seating like its competitors. According to the airline, Southwest conducted research and 8 million simulation-based boarding trials. The announcement came ahead of Southwest’s earnings call planned for Thursday morning. More details are expected then and during the company’s investor day in late September.

“Moving to assigned seating and offering premium legroom options will be a transformational change that cuts across almost all aspects of the company,” said Bob Jordan, CEO of Southwest . “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.”

Southwest’s research found 80% of its customers and 86% of potential customers prefer an assigned seat. When customers choose a different airline, the open seating policy is the No. 1 reason cited for the change, Southwest reported.

The airline will also add premium, extended legroom to the cabin. Details of how the aircrafts’ cabins will change are still in the design phase, but Southwest expects roughly one-third of seats across the fleet to offer extended legroom, the same as its narrowbody aircraft competitors.

Jordan also said financial results for the second quarter were “impacted by both external and internal factors.” Southwest had previously lowered its financial expectations for the quarter and reported a $7.4 billion operating revenue for the quarter, a 4.5% increase from the previous year. Unit revenue was slightly better than the company’s previous expectation of up to 4.5% for the quarter, which Southwest attributed to the final days of June and “the resulting benefit from incremental bookings from other carrier cancellations.”

Southwest also announced the addition of red-eye flights. The flights will begin on Valentine’s Day 2025 in five initial nonstop markets: Las Vegas to Baltimore and Orlando, Florida; Los Angeles to Baltimore and Nashville, Tennessee; and Phoenix to Baltimore.

Overnight flights at Southwest were rumored to begin in the next few years, but were rolled out ahead of expectations from leaders. Southwest will phase in additional redeye flying in its upcoming schedules as part of its “multiyear transformation to a 24-hour operation,” the airline reported. It expects to provide incremental revenue and cost savings.

The changes come as activist investor Elliott Investment Management has called on Southwest to make dramatic alterations to the airline’s business model to generate a return for shareholders.

Elliott has disclosed a $1.9 billion stake in the air carrier.