Love it or hate it, Southwest Airlines does things differently, flying all-economy Boeing 737s with a first-come, first-served seating model. But now the airline is considering the unthinkable: Could assigned seating (for an extra fee) be coming to Southwest flights? Or extra legroom seats – maybe even first class?
Southwest president and CEO Bob Jordan hinted Thursday that some kind of major change is on the horizon in a news release, saying the airline is “evaluating options to enhance our customer experience as we study product preferences and expectations, including onboard seating and our cabin.”
“We've transformed before, adding things like Wi-Fi, wider bins, and in-seat power,” Jordan explained to investors later Thursday. “Too early for specifics, but I want to be transparent that work is on its way.”
Southwest executives did clearly state that the airline will not touch its beloved no baggage fees policy, saying travelers choose Southwest time and again because of it.
There's no telling when change is coming or what, if anything, Southwest will actually do. Jordan later added that the airline would unveil “new strategic initiatives” in late September.
But for an airline that has set itself apart (and won travelers' loyalty) with its simplicity, any change would be seismic for Southwest and its customers.
Free change and cancellations on any fare were a staple for Southwest long before other airlines ditched them during the worst of the COVID-19 pandemic. Every passenger gets two checked bags on each and every ticket. Rather than assigning seats in advance, travelers can pick any open seat – flyers who check in earlier (or pay up for early boarding) get first dibs.
And even as every other major U.S. carriers raced to adopt basic economy fares hamstrung by restrictions, the airline's brass previously promised: “You’re not going to see basic economy from Southwest.”
“They unbundle, and we don't,” Gary Kelly, Jordan's predecessor as CEO, said in 2019.
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But that was before. Charging for assigned seats – and charging even more for better seats – would be a surefire (yet annoying) way for Southwest to make more money at a time when they desperately need it.
The airline posted a tough, $231 million loss in the first three months of 2024. And things don't look much better ahead, with the airline predicting more trouble due to changing travel demands and higher fuel prices.
Worst of all, the all-Boeing airline is paying a steep price for the jet manufacturer's woes. Delivery delays forced the airline to cut about 2,000 jobs and end service altogether to and from three U.S. airports – Syracuse (SYR), Bellingham (BLI), Houston (IAH) – as well as Cozumel (CZM).
That's why Jordan's statement about looking into possible “onboard seating” and “cabin” changes is so interesting. If more revenue from fees is what Southwest needs to make investors happy, charging some seat selection fees could help the bottom line.
Earlier this month, both Delta and United hosted much rosier earnings calls with investors after solid quarters. Both airlines doubled down, saying premium cabins – first, business, and enhanced economy classes – were helping drive their bottom line successes.
As Southwest's numbers slipped, it's fair to wonder whether “cabin” changes could include some kind of enhanced seating at the front of the plane is in the works, too.
This is a developing news story, check back for updates.