As it tries to fend off an activist investor who has no idea how to run an airline, big changes are coming to Southwest Airlines in an attempt to improve its financial performance, as well as to enhance its customer experience.
For more than 50 years, Southwest Airlines has had a formula that worked. Their no-frills, all-coach style of service at competitive prices, no assigned seats, free checked bags, and free drinks and snacks have helped them to build a fierce following. However, in recent years, Southwest has struggled to boost its profitability, while consumers’ shift to more premium experiences has left at least some customers wanting. That’s why big changes are coming to Southwest – to help it better adapt to the changing travel landscape and improve its financials.
Big Changes Are Coming to Southwest
We need to discuss several things today, so let’s break things down to make them easier to digest. The first thing I want to cover is also the most consequential, and that is seating.
Assigned and Premium Seating
People either love or hate Southwest’s open seating policy. However, in its press release, the airline claims that 80% of existing customers and 86% of potential customers prefer an assigned seat. Moreover, they say that the number one reason for defections is the ability to select a seat. To remedy this, Southwest will do away with its open seating policy completely and switch to assigned seating.
With the move to assigned seating will be the addition of premium seating. No, First Class seats won’t become available. Rather, an extra legroom product will be added to Southwest’s aircraft. What that product will look like isn’t clear yet. It’s safe to assume that existing seats will be used, though the exact layout remains a mystery. All Southwest has said thus far is that these premium seats will make up a third of the available seats across its fleet.
Redeye Flights
Next up, as we discuss how big changes are coming to Southwest, is the availability of redeye flights. Recently, the airline said these types of flights were coming soon, though they didn’t give us a firm timeline as to when. They also said that Las Vegas and Hawai’i routes would be the first to see them. Well, Southwest quietly began selling redeye flights on several specific routes:
- LAS-MCO operating at WN5999 departing LAS at 10:50 pm and arriving the next day at 6:05 am
- LAS-BWI operating as WN6001 departing LAS at 10:00 pm and arriving the next day at 5:30 am
- LAX-BWI operating as WN5998 departing LAX at 9:30 pm and arriving the next day at 5:20 am
- LAX-BNA operating as WN6050 departing LAX at 11:45 pm and arriving the next day at 6:00 am
- PHX-BWI operating as WN6099 departing PHX at 11:05 pm and arriving the next day at 5:10 am
The above flights commence on February 13, 2025, which means they’ll arrive on Valentine’s Day 2025. It’s worth noting that redeye options are available only on these eastward flights – no redeye returns are available at this time. However, I do expect that to change over time.
Also, you’ll notice that Hawai’i is absent from this list. I’m sure that’s intentional, as Southwest tries these flights on what are likely easier routes. This, too, will change with time. But I’m sure it’ll be a much larger shift, as redeye flights for Hawai’i will finally make single-itinerary connections from the U.S. East Coast and Central areas to the islands possible.
Moreover, as we discuss that big changes are coming to Southwest, this is, perhaps, the most consequential. Not only will it give customers more options, but it will also allow Southwest to fly more without acquiring additional aircraft by increasing the utilization of its existing fleet. This could greatly benefit the operating economics of the airline.
What’s Not Changing
As we discuss that big changes are coming to Southwest, it’s important to highlight what’s not changing. Thankfully, the airline’s checked bag policy remains the same – that’s two free checked bags per passenger. Free snacks and drinks are also staying, and, no, Southwest will not be expanding its offerings with meals. Finally, in a rather bizarre twist, their current boarding process is going to remain in some modified form.
Big Changes Are Coming to Southwest, Final Thoughts
There you have it. Big changes are coming to Southwest in the form of assigned seats, extra legroom seats, and redeye flying. However, these changes will trigger others, too. For example, Southwest’s fare structure is partially predicated on boarding priority. How, then, will Southwest differentiate its fares going forward? Moreover, what benefits will Southwest co-brand credit card cardholders receive, since many of those are based on boarding priority, too?
Circling back to the extra legroom product, where the heck will the space for that extra legroom come from? Southwest offers a standard pitch of 31″- 32″, so will they reduce that down to the industry standard of around 30″ to open up enough space for those extra space seats? This is something we’ll likely get answers to in a couple of months, as Southwest plans on providing more details on its premium product at the investor day in September.
In the meantime, let me know what you think of all these changes.