Elliott Investment Management has ramped up its battle with Southwest Airlines by formally calling for a special shareholder meeting on December 10, during which shareholders could vote for a new set of directors to steer the company’s strategy.
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
Elliott Investment Management has ramped up its battle with Southwest Airlines by formally calling for a special shareholder meeting on December 10, during which shareholders could vote for a new set of directors to steer the company’s strategy.
Elliott Investment Management is all gas and no brakes in its efforts to boost Southwest Airlines' business potential, going so far as to launch a new podcast series.
Host Agency Reviews (HAR), which is a leading resource for travel advisors, has launched a new resource that functions like its host agency profiles, but for travel agency software, called Travel Agency Software Profiles.
Elliott Investment Management said Monday that it is requesting a December 10 special meeting for Southwest Airlines shareholders, kicking off the hedge fund’s first proxy fight since 2017.
Delta Air Lines will launch two new overseas routes in 2025. One will take passengers to Europe and the other to Asia.
Airlines are making schedule adjustments for flights out of Florida as many residents are scrambling to evacuate due to Hurricane Milton.
Four international airports are set to suspend commercial flights as Hurricane Milton approaches Florida, while American Airlines scheduled extra services for evacuees.
Kenya has long been one of Africa's most popular destinations. There's something here for every type of traveler: Wildlife fanatics flock to Masai Mara for once-in-a-lifetime safaris, beach lovers island-hop through the turquoise waters of the Lamu Archipelago, and cosmopolitans appreciate Nairobi's growing culinary and art scene.
If you're a regular Southwest Airlines customer, you may start noticing some big changes at the airline sooner than you might expect.
We are thrilled to announce the speakers for Skift Aviation Forum, co-hosted by American Airlines and DFW International Airport, set to take place on November 12 in Dallas, Texas. This year’s lineup features some of the most influential leaders in the aviation industry, who will share their insights and expertise on the future of aviation.
Skift and Intrepid Travel are pleased to announce their partnership in launching a new Climate Hub, an initiative designed to provide solutions-based journalism for the travel industry as the sector ramps up efforts to adopt sustainable practices and address the pressing challenges of climate change.
It hasn’t been an easy year for Southwest Airlines.