Southwest Airlines switches to assigned seating
DALLAS - Dallas-based Southwest Airlines announced a huge change for passengers. It will shift to assigned seats starting sometime next year.
The airline has had open seating for more than 50 years.
Southwest CEO Bob Jordan made the announcement on Thursday morning ahead of the company's latest earnings call.
SAN DIEGO, CA - JULY 10: Passengers sit in their assigned seats before take-off July 10, 2006 at San Diego's Lindburgh Field Airport in San Diego, California. Contrary to the airlines's traditional practice, Southwest is experimenting with a new pass
"It's something that our customers really want and we're always looking to fulfill the needs of our customers," he said.
Southwest said it conducted a survey and found that 80% of its passengers preferred assigned seats.
"You know, as you make any change you have to be clear about what you stand for and who you are. Southwest Airlines, that is a great network and the best set of policies and great hospitality and above all the best people. Then you have to be willing to challenge everything else because customer preferences change over time and this is a great example," said Jordan.
The travelers that FOX 4 spoke to at Dallas Love Field were split on the news.
"I think assigned seating is better because it keeps down confusion and chaos. Everybody is not trying to get on the plane to get to a certain area. So I'm okay with assigned seating. I'm okay with it," Angela Davis said.
"I like open seating just because you can be more flexible to where you want to sit either in the front or the back. Some people might be more comfortable in the back versus the front or whatever. They choose versus assigned seating," said Georgia Mayfield.
Profit falls despite higher revenue at Southwest and American airlines
Southwest Airlines made an announcement about its new seating policy on the same day that both it and American Airlines reported a steep drop in second-quarter profit despite higher revenue.
Southwest said it will also add a premium seating option with more legroom for an extra price.
That might involve up to a third of the seats on its planes.
And it will add "redeye" flights starting with a few routes on Valentine’s Day next year. It will phase in additional routes over time.
The big announcements come on the same day that the airline reported a 46 percent drop in year-to-year quarterly profit to $367 million.
While the profits dipped, Southwest's revenue rose.
"Their revenues and profits are have been lagging behind other, more conventional airlines," said Mike Davis, an economist at SMU.
The airline posted revenue of $7.35 billion over the last three months, which was better than expected.
"I think the fact that their profits are down, but their revenues are up, to put it really bluntly, that probably means they need to be charging more. And they may not charge more for the back of the airplane conventional coach seat, but they're going to try and try and squeeze more revenue out of these premium seats," said Davis.
It’s not clear when the assigned seating will start.