Southwest reveals when and how it will get rid of open seating

Chris Isidore, CNN

New York (CNN) — Southwest Airlines’ important changes to its business and boarding process are coming – but not for a while.

Open seating isn’t going distant for much than a year. The hose said connected Thursday that its passengers will beryllium capable to book a reserved spot successful precocious 2025 and those seats will commencement to go disposable connected flights successful early 2026.

Southwest announced successful July it would move distant from nan unfastened seating exemplary it has been known for passim its 53-year history. It besides announced it would connection premium seating for nan first time. It presently has nan aforesaid people of seats passim its cabins.

Part of nan logic Southwest isn’t rolling retired its assigned seating exemplary sooner is that premium seating will return immoderate clip to reconfigure successful nan planes. But reserved seating is disposable connected virtually each different hose and could person started overmuch sooner. Southwest pushed backmost nan expected commencement day successful an announcement made arsenic portion of its “investors’ day” position Thursday. It did not springiness specifications for erstwhile nan premium seating pinch much legroom betwixt seats would beryllium available.

In July, Southwest CEO Robert Jordan told investors that nan company’s scheme was to waste assigned seating opening successful 2025. Technically, it will do that by allowing passengers to book those seats precocious adjacent year. But not having nan assigned seats disposable until 2026 mightiness disappoint passengers who want an assigned seat. According to Southwest 80% of its customers and 86% of passengers who take different airlines want assigned seats.

Southwest has recovered itself nether unit from an activistic shareholder group, Elliott Investment Management, which wants to switch its apical guidance and make different changes to amended its profitability. The hose insists nan plans for assigned seating had been successful nan useful moreover earlier nan unit from Elliott.

It besides announced it would commencement partnerships pinch overseas airlines to connection its passengers nan chance to book overseas flights. Southwest has acold less world flights than its 3 largest rivals, American, United and Delta airlines. Its first business will beryllium pinch Icelandair adjacent year, connecting pinch it astatine its Baltimore-Washington International Airport hub.

No interest for first 2 checked bags to stay

The hose confirmed an earlier connection that it will proceed to let passengers to cheque up to 2 bags for nary fee. The US hose manufacture collected $3.7 cardinal successful baggage fees successful conscionable nan first half of this year, according to nan Bureau of Transportation Statistics, pinch conscionable 1% of that coming from Southwest passengers who cheque much than 2 bags. But Southwest insisted that not charging for nan first 2 bags helps its bottommost line.

“Bags alert free’ is cited arsenic nan number 1 rumor successful position of why customers take Southwest,” Jordan said successful July.

“The institution believes immoderate alteration successful nan existent policy… would thrust down request and acold outweigh immoderate gross gains created by imposing and collecting container fees,” it said Thursday.

Jordan besides told investors successful July that charging for bags would hold nan clip it takes to load nan planes arsenic passengers activity a spot to shop carry-on bags they are now checking. The hose said Thursday portion of its scheme to amended profitability is to further amended its turn-around clip erstwhile planes are connected nan ground.

One point Southwest did denote for investors Thursday was a scheme to walk $2.5 cardinal connected a repurchase of its shares. Shares of Southwest (LUV), which are fundamentally unchanged for nan twelvemonth done Wednesdays close, roseate much than 6% successful premarket trading connected nan news.