Southwest Airlines has made a major shift in its boarding process. The airline will no longer offer free choice seating to people as they board. Like most airlines, Southwest customers will be in assigned seats. The change will allow Southwest to charge a higher rate for premium seating and satisfy customers. The airline said open seating was the No. 1 reason passengers claimed they were unhappy, CNN reported.
“The research is clear and indicates that 80% of Southwest customers, and 86% of potential customers, prefer an assigned seat,” a statement from the airline read. “By moving to an assigned seating model, Southwest expects to broaden its appeal and attract more flying from its current and future customers.”
CNN reported that Southwest suffered a 51% drop in adjusted profit to $370 million, although revenue for the quarter was boosted due to greater passenger traffic. Southwest has the strongest credit rating of any airline but has been struggling with mismanagement, other outside factors, and changing industry dynamics. Shares of Southwest were down by more than 4%.
Ryan Green, previously Southwest’s executive vice president and chief commercial officer, will now be the company’s executive vice president of commercial transformation.
“I’m eager to lead this next step in our transformation to serve our Customers with an even better Southwest. In addition to meeting the evolving needs of Customers and fostering more loyalty, these changes are expected to generate additional revenue as we capitalize on greater demand for Southwest Airlines and offer Customers the ability to purchase premium seating options,” Green said. “Together, these strategic initiatives play an integral role in the airline’s comprehensive strategy to meet Customer needs and enhance Shareholder value, while maintaining the unique Culture, Hospitality, and flexibility that make Southwest – Southwest.”
Southwest will also offer overnight “red-eye” flights for the first time to improve efficiency.
