Southwest Airlines raised its revenue guidance for the third quarter as it plans to announce more changes during its investor day on Thursday.
26.09.2024 - 19:47 / thepointsguy.com / Delta Air Lines / Bob Jordan
Southwest Airlines' new assigned seating model — complete with its first-ever extra-legroom seats — is set for takeoff in early 2026.
Meanwhile, big changes are in the works for Southwest's Rapid Rewards loyalty program, including new benefits for A-List and A-List Preferred elite status members and opportunities for international redemptions as the Dallas-based carrier prepares to launch partnerships with international airlines.
Together, these changes will mark perhaps the biggest commercial overhaul for Southwest in a half-century, as the carrier faces mounting concerns about its financial performance.
This news comes two months after Southwest executives first unveiled plans in late July to add extra-legroom seats and ditch its trademark seating policy, a unique arrangement that's been a hallmark of the airline for the last half-century.
Both are part of a comprehensive plan by executives to boost revenue, as the airline has far trailed its larger U.S. competitors like Delta Air Lines and United Airlines in profitability since the coronavirus pandemic.
Now, as TPG reported last week, one key Southwest policy will remain in place: The carrier is not ditching its popular two "bags fly free" policy.
But far more details are expected Thursday about major changes in the works at Southwest as the company prepares to host its annual investor day.
Here's what we know so far.
Related: Southwest Airlines cuts 15 destinations from Atlanta, adds 6 new Nashville routes
Southwest will begin selling assigned seats in late 2025.
The airline will begin flying with its assigned seating model in the first half of 2026, the carrier said Thursday.
This summer, the carrier cited exhaustive customer research in deciding to shift to a new assigned model. CEO Bob Jordan said in July that survey data found that 80% of Southwest flyers would prefer assigned seating and that a whopping 86% of customers who don't fly Southwest preferred the model.
"Customers travel different following the pandemic," Jordan told investors in Dallas on Thursday. "Customer preferences have changed."
"Southwest flies farther than ever, and seat assignments are a higher priority on long-haul flights," the carrier added in a broader Thursday statement summing up its overhaul plan.
Southwest passengers flying on the airline's lowest-level ticket type, Wanna Get Away, will not get complimentary seat selection. Travelers who don't pay to select a seat ahead of time will receive a seat assignment prior to departure.
Customers who select a Wanna Get Away Plus fare type (or higher) will get complimentary seat selection at booking.
The airline will also upcharge passengers on some tickets for "preferred" seats — which are standard seats situated closer
Southwest Airlines raised its revenue guidance for the third quarter as it plans to announce more changes during its investor day on Thursday.
Southwest Airlines announced a three-year plan on Thursday to revitalize its operation and customer offerings as it defends against an activist investor calling for new leadership and a strategy overhaul.
Southwest Airlines is making major changes to its network.
Under an existing partnership established in 2015, Despegar was restricted to using Expedia Group hotel supply for the vast majority of inventory outside of home base Latin America, a stipulation that hindered Despegar’s expansion ambitions.
Southwest Airlines said Wednesday that it would reduce service and staff in Atlanta due to a lack of demand.
Dallas-Fort Worth travelers who want to take high tea overlooking Victoria Harbour at the Peninsula Hong Kong or chow down on dim sum have a new way to get to the bustling Asian metropolis next spring.
According to Airbnb, there has been a 130 percent increase in stays at Airbnbs with Northern Lights views. The best Airbnbs in Iceland offer front row seats to the northern lights — making it the top place to go to see them. Not only that, but by booking a remote stay you’ll have easy access to the outdoor adventures this Nordic country is known for. The best Iceland Airbnbs even offer extras — like hot tubs, fireplaces, maybe even a chance to greet a gaggle of wild horses as they traverse their way across the countryside. “Wow” your travel partners with these epic Iceland Airbnbs.
Elliott Investment Management said Tuesday it would call for a special meeting at Southwest Airlines as soon as next week.
Leading full-service luxury villa company Rental Escapes has added as many as 65 hand-selected villas to its impressive collection of unique stays around the world.
Southwest Airlines has issued a warning to employees without actually warning them. It’s more preparatory that something ominous is likely coming.
Attention, American Airlines members: If you're chasing elite status with the carrier, you should check your American Airlines AAdvantage account, as you may be targeted for an end-of-the-year promotion. A few TPG staff members were targeted with a new American Airlines promotion to earn Loyalty Points on award flights.
Escaping to Bermuda for the holidays just got easier thanks to a new promotion from island-based carrier BermudAir giving away free companion tickets.