Southwest Airlines is considering making major changes to its seating process in an effort to boost revenue and market share. CEO Bob Jordan announced during an earnings conference call that the airline is exploring “transformational options” surrounding its single-class, open-cabin format.
While Jordan did not provide specific details about the potential changes, he emphasized that Southwest remains committed to its customer-friendly policies. However, he did not rule out the possibility of adding a separate first-class or premium cabin, although he noted that such changes may not align with the airline’s brand identity.
One thing that Jordan did make clear is that Southwest will not be adding fees for checked luggage, as the free checked bags are a valuable brand differentiator for the airline. Despite this, Jordan acknowledged that it may be time for changes to the airline’s seating model, which currently does not include assigned seats.
The consideration of these changes comes as Southwest reported a loss of $231 million in the first quarter of 2024, higher than analysts expected. The airline faces challenges in generating ancillary revenue compared to its competitors, who have seen success in upselling seat assignments and other premium services.
Southwest, which exclusively operates Boeing 737 aircraft, is also dealing with delivery delays from Boeing, leading the airline to cut four cities from its route map. Jordan indicated that more information about potential seating changes may be available in September, following an investor conference.
The shift in strategy represents a significant departure from Southwest’s previous stance on seating and cabin configurations, reflecting the rapidly changing operating environment for airlines. Stay tuned for updates on how these potential changes could impact the airline and its passengers.