In April, we reported that U.S. airlines take in billions in revenue from seating fees alone. However, Southwest Airlines, which practices open seating, posted a $231 million loss in Q1. Today, the airline announced that it will install assigned and premium seating in its airplane boarding processes.

Since opening customer operations in 1971, Southwest has always offered open seating. However, investor pressure and customer research are changing its tune. In today’s media release, the airline says will soon make the shift to assigned and premium passenger seating. The company also shared that it will bump operations to run 24/7 and offer overnight redeye flights.

“Moving to assigned seating and offering premium legroom options will be a transformational change that cuts across almost all aspects of the Company,” says Bob Jordan, President, CEO, & Vice Chairman of the Board, in the company’s release. “Although our unique open seating model has been a part of Southwest Airlines since our inception, our thoughtful and extensive research makes it clear this is the right choice— at the right time—for our Customers, our People, and our Shareholders.

Most travelers prefer assigned airplane seating

According to the Southwest media release, 80% of its current customers and 86% of its potential customers would rather have an assigned seat. In fact, when customers leave Southwest for a competitor, exit surveys cite displeasure with open seating as the primary motivator for switching to another airline.

Regarding investor pressure, assigned and premium seating allows the airline to charge more for certain seats. Indeed, a consulting firm published a study reflecting that eight U.S. airlines earned a combined $4.2 billion in assigned seat revenue in 2022.

Jordan reiterated that the motivations for the switch are bi-fold. “We have been building purposefully to this change as part of a comprehensive upgrade to the Southwest experience as we focus on Customer expectations – and it will unlock new sources of revenue consistent with our laser focus on delivering improved financial performance.”

Southwest didn’t share exactly when it will start assigned passenger seating. It says more details and information will come during its Investor Day in late September.