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How will customer satisfaction ratings for Southwest Airlines change by June 30, 2025, after the implementation of assigned seating?
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Customer satisfaction surveys or reports from reputable sources
Story
Southwest Airlines to Introduce Assigned Seating, Premium Options, Ending 50-Year Tradition
Jul 25, 2024, 12:00 PM
Southwest Airlines announced a significant change to its long-standing open seating policy, which has been a hallmark of the airline for over 50 years. Starting next year, the Dallas-based carrier will introduce assigned seating on all flights, marking the biggest shift in its history. In addition to assigned seats, Southwest will offer premium seating options with extra legroom and will also begin operating overnight redeye flights starting in February 2025. This move comes as the airline faces mounting pressure to increase revenue and adapt to changing consumer preferences. The decision was influenced by activist investor Elliott Management, which has been pushing for strategic changes at the airline. According to the company, 80% of customers prefer assigned seating. Additionally, Southwest reported Q2 2024 earnings with an adjusted EPS of $0.58 and revenue of $7.4 billion.
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