Southwest Airlines announced on July 25th that they will be transitioning to a designated seating system and offering red-eye flights to passengers, after releasing a disappointing financial report for the second quarter. This shift comes after decades of operating as a free seating airline with low fares.
According to the company’s press release, these changes are aimed at “catering to the evolving preferences of customers and exploring more revenue opportunities.” The financial report released on the 25th showed that Southwest Airlines earned $367 million in profit in the second quarter, a 46% decrease compared to the same period last year. Bob Jordan, President, CEO, and Vice Chairman of the company, stated in the press release, “The second-quarter performance was impacted by external and internal factors and fell short of what we believe we can deliver.”
Since 1971, Southwest Airlines has been known for its free seating model, which has set it apart from most other airlines that offer first-class/premium boarding services. The company claims that this model helps keep airfares affordable.
However, the company’s research revealed that 80% of existing customers and 86% of potential customers prefer designated seating, prompting them to make a change. Jordan mentioned, “While our unique free seating model has been part of Southwest Airlines since its inception, after careful consideration and extensive research, now is the best time to make the right decision for customers, employees, and shareholders.”
Southwest Airlines is also committed to upgrading its cabin design, including seats manufactured by RECARO. RECARO is known for its comfortable airplane, car, and gaming seat designs. Under the new policy, Southwest Airlines will offer premium seats with more legroom, with approximately one-third of the fleet expected to provide such options. The airline has not yet announced the specific implementation time for the new seating system.
According to the press release, red-eye flights will be available starting from February 14, 2025. The new round-the-clock operation will bring in more revenue and cost savings for the airline. The overnight direct flights will cover five routes: Los Angeles to Baltimore and Nashville, Las Vegas to Baltimore and Orlando, and Phoenix to Baltimore.