Southwest Airlines plans to begin allowing customers to assign seats, ending a tradition that has lasted more than 50 years, and will sell premium seats for customers who want extra legroom.
The airline said Thursday it is reviewing seating options and is making changes due to changing passenger preferences, which could help generate revenue and improve performance.
The same day, Southwest Airlines and American Airlines announced sharp declines in second-quarter profits despite rising revenue.
Airlines are adding flights faster than travel demand can grow, resulting in rising costs and reduced pricing power, especially for flights within the United States.
Dallas-based Southwest Airlines said its second-quarter profit fell 46 percent to $367 million from a year earlier as rising labor, fuel and other costs outweighed rising revenue, in line with Wall Street expectations.
American Airlines also reported a 46 percent drop in profit to $717 million and said it would break even in the third quarter, well below Wall Street expectations for the July-to-September period.
Since its founding, Southwest has used open seating, where passengers queue to board and choose their own seat once on board, but the airline said preferences are “evolving” and that as more travelers take longer flights, they are asking for assigned seats.
The airline announced that it will operate late-night flights for the first time.
Southwest Airlines announced that its first overnight flights will begin on February 14, 2025 in nonstop markets, including Las Vegas to Baltimore and Orlando, Los Angeles to Baltimore and Nashville, and Phoenix to Baltimore. It plans to gradually add more late-night flights in the future.
