Southwest has announced a major shakeup in its product offerings amid a drop in profits. The Dallas-based carrier is moving forward with plans to change its seating model, revamp its boarding process, and add overnight redeye flights.
Seating and Boarding Changes: Premium and Assigned Seats
For over 50 years, Southwest has used a unique open seating model, in which passengers are assigned a boarding position and then pick any open seat once they board the aircraft.
Southwest has acknowledged that consumer preferences have changed, citing research showing that 80 percent of existing customers and 86 percent of potential customers prefer an assigned seat. Furthermore, the airline has stated that when customers stop flying with Southwest in favor of a competitor, open seating is cited as the number one reason for the move.
The airline will also be adding a premium extended legroom portion of the cabin, again citing research on consumer preferences. According to the airline, roughly a third of its seats will offer extended legroom.
Introducing Redeye Flights
In another major shift for the airline, Southwest will begin operating redeye flights. While past labor attendant contracts prevented the airline from adding overnight flights, its new pilot and flight attendant agreements allow this change.
Starting on Feb. 14, 2025, the airline will begin flying overnight flights in five markets:
- Las Vegas (LAS) to Baltimore (BWI)
- Las Vegas (LAS) to Orlando (MCO)
- Los Angeles (LAX) to Baltimore (BWI)
- Los Angeles (LAX) to Nashville (BNA)
- Phoenix (PHX) to Baltimore (BWI)
The introduction of redeye operations will allow the airline to improve its aircraft utilization and increase capacity without new aircraft. Southwest plans on introducing additional redeye flying in what it calls a “multi-year transformation to a 24-hour operation.”
“Urgent and Deliberate” Steps Being Taken Amid Financial Struggles
The product changes were announced on Thursday alongside the airline’s Q2 financial results. Southwest reported a 46 percent drop in profit to $367 million – or 58 cents per share – despite a 4.5 percent year-over-year increase in Q2 revenue. Although the company saw a decline in profits, its earnings per share still beat analysts’ estimates of 51 cents per share.
Southwest was once the most profitable airline in the United States but has more recently struggled against other airlines.
“Our second quarter performance was impacted by both external and internal factors and fell short of what we believe we are capable of delivering,” Bob Jordan, President, Chief Executive Officer, & Vice Chairman of the Board of Directors stated in a message to investors.
