Southwest is ending its open seating policy

Southwest is doing away with its 50-year-old open seating policy, which lets passengers pick the seats they want. Instead, the airline will start assigning them one. Southwest will also redo its plane cabins to have additional seats with extra legroom and plans to charge a premium for them.

The move has the low-cost carriers’ loyal customers divided.

CEO Bob Jordan says the new boarding policies could bring over $1 billion.

The new changes are expected to take place next year after regulatory approval. While some flyers welcome the ability to pick seats when booking tickets, others feel the decision marks a significant shift in the airline that offers other benefits like free checked bags.

Don’t worry. Southwest doesn’t plan to change its “bags fly free” policy right now.

Response to financial pressures
The Dallas-based airline reported its second-quarter profit dropped more than 46% to $367 million, despite a record revenue increase of 4.5% from last year to $7.35 billion. Other airlines, such as Delta Air Lines and American Airlines, also reported lackluster Q2 profits but were able to offset costs through first-class tickets.

Investors’ pressure
Southwest is under pressure from its investor, Elliott Investment Management, which gave nearly $2 billion. Elliott wants the airline to increase its bottom line.

The carrier also plans to introduce red-eye flights in select markets in 2025.