Southwest Airlines launches first assigned seats

A new seating policy at Southwest Airlines changes how ticket prices are structured.

Southwest Airlines begins sale of assigned seats

Southwest Airlines launched its first assigned seat sales this week, marking a significant shift in its seating policy after more than 50 years of open seating. The prices for these seats vary based on the route, the timing of travel, and the selected seat's position. For instance, roundtrip fares for the 'Choice' ticket class from Denver to Orlando during the Presidents Day holiday are priced around $692, with optional seat fees ranging from $41 to $96 based on seat preference. Passengers with frequent-flyer status or Southwest credit cards can avoid some fees. This transition is part of an overall strategy to align with industry norms, as assigned seating and baggage fees have proven lucrative for major airlines. Notably, a recent report highlighted that major U.S. airlines collectively earned $12.4 billion from seat assignment fees between 2018 and 2023, prompting calls for revenue optimization at Southwest, including from influential investors.

The introduction of assigned seating signifies a crucial turning point for Southwest Airlines, known for its unique open seating policy. By tapping into a revenue model that has benefited its competitors for years, Southwest aims to boost profits and satisfy investor demands. With increasing operational pressures in the competitive airline industry, this move reflects broader economic trends where customer preferences shift towards personalized services, even at a price. However, this shift may alter the customer experience, potentially driving away loyal patrons accustomed to the airline's previous model.

Highlights

This change may reshape Southwest's identity and customer loyalty in the long term.