Southwest Airlines will start assigning seats to passengers, ending its long-standing policy of allowing passengers to pick their seats once they have boarded, the airline said Thursday.
The new procedure will be implemented to increase revenue and in response to feedback from customers, 80% of whom report preferring an assigned seat, Southwest said.
“This is the right choice — at the right time — for our customers, our people and our shareholders,” said Bob Jordan, the president and CEO of Southwest. Even though the airline has been known for its unique seating model for more than 50 years, preferences have evolved, with more customers taking longer flights where they prefer a seat assignment, the statement said. The new policy was reported earlier by The Wall Street Journal.
The changes bring Southwest, which for years has distinguished itself by offering low prices and a simple business approach, more in line with conventional airlines like American Airlines and United Airlines.
Southwest makes a little less than $1 billion from fees it charges for the ability to board early and “ancillary” services, Jordan said Thursday on a conference call with analysts to discuss the company’s second quarter results. The company expects that earnings from the move to assigned seating and offering seats with extra legroom will be “substantially north of that,” he said.
The company also Thursday reported profit of $367 million for the three months ended June 30, down 46% from a year earlier. Revenue climbed 4.5%, to $7.4 billion.
Southwest’s seat assignment plan came as it faced significant challenges in achieving its growth plans. The airline, which flies only Boeing 737 planes, said in April that it expected only 20 jets from Boeing this year, down from the 46 it had previously anticipated. In January, a panel of a Boeing 737 blew out during an Alaska Airlines flight, leading to a slowdown in production as Boeing faced increased regulatory scrutiny over its quality control.
Airlines have tinkered with ways to make boarding more efficient since they started charging for checked bags 15 years ago. That change led more people to bring carry-on luggage and increased demand for early boarding as passengers compete for space in overhead bins.
This article originally appeared in The New York Times.
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