Southwest Airlines Making Big Change After Major Monetary Losses

Southwest Airlines are making a major change to how people book their seats after reporting huge monetary losses.

A view shows where travelers will check their bags in the newly renovated Portland International Airport on Thursday, July 18, 2024 in Portland, Ore. The terminal will officially open on August 14. / Abigail Dollins/Statesman Journal / USA

57 years ago, Southwest Airlines was founded. Four years later, they were operational, with travel only being done throughout Texas between Dallas, Houston and San Antonio.

By 1979, regional flights out of state were offered and they have since grown into an airline that offers flights to 42 states and places in Central America. There are some perks to flying Southwest, such as the free baggage checks.

Southwest is also known as a low-priced carrier compared to other major airlines. However, they are going to adopt something that their competitors have been doing for a long time; assigned seating.

To this point, Southwest has had an open seat policy, allowing travelers to pick where they want to sit on the plane. It is a policy that has existed since the airline was founded, but it needs to adjust to the times.

In a statement shared by the airline, via CNN, it was revealed that the No. 1 reason for unhappy passengers is seating arrangements. 

“The research is clear and indicates that 80% of Southwest customers, and 86% of potential customers, prefer an assigned seat,” said the airline in a statement. “By moving to an assigned seating model, Southwest expects to broaden its appeal and attract more flying from its current and future customers.”

Because of adjustments needing to be done to their fleet, the earliest Southwest will be offering assigned seats in 2025. Additional information could be made available in September when more talks are going to be had.

A big reason for the shift in how they will do seating arrangements is money. They are watching competitors such as Delta, United and America rake in profits as they charge more for better seating options.

That made things difficult for Southwest, which didn’t offer such amenities as an option on their low-budget flights. Alas, other airlines, such as Spirit and Frontier, are even beating them in that realm.

That has resulted in major monetary losses, as shared by AP News. “Southwest said it lost $231 million. CEO Robert Jordan said the airline was reacting quickly “to address our financial underperformance,” including by limiting hiring to critical positions and asking employees to take unpaid time off.”

One thing that won’t be going anywhere is the free checked bags. Southwest currently offers two free checked bags, something that Jordan believes is a perk that will keep customers coming in once they figure out their new seating arrangement policy.