Southwest Airlines is putting an end to its tradition of open seating, opting to assign seats and have different options for travelers to choose from. But why did Southwest decide to make the change?
Joe Brancatelli, an airline business expert, said the change is “shocking, but not surprising.”
“Southwest has had some financial issues after being the most profitable airline in history for most of its history. And now it's being chased by a hedge fund that wants to change everything that Southwest does,” he said.
Southwest Airlines CEO Bob Jordan told CNBC this change is what customers have asked for.
“86% of customers that don't fly Southwest want an assigned seat. And when a customer defects from Southwest to another competitor, it's the number one reason,” he said. “So it's the right thing at the right time.”
Brancatelli said he suspects this may be true, but it’s ultimately about the money.
“Southwest can now start charging for assigned seats, you know, the better seats get higher rates, so this is a profit move,” he said.
The way Southwest has boarded people on their planes may also change as a result. It may be an entirely different Southwest experience, Brancatelli noted.
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“Southwest may just say, look, you buy your seat, you buy your seat assignment at the same time and then we're going to board you like every other airline,” he said. “There are some benefits to this for the passengers.”
However, Brancatelli said it's hard to get past the reality that this is about Southwest trying to increase their profits. He said changing to assigned seats is going to change the brand of Southwest, but may not necessarily hurt it.
Southwest will continue to allow travelers to travel with two bags for free…for now.
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