After having announced a $231 million net loss from the first quarter of 2024, Bob Jordan, CEO of Southwest Airlines, has revealed the carrier might change some longstanding traditions, including the practice of passengers picking their own seats only after they board a plane.
Southwest Airlines’ first quarter losses are mainly due to three pain points. Firstly, labor costs are on the rise with a 19% or $462 million increase compared to last year. Secondly, maintenance and airport fees are also on their way up and thirdly due to the Boeing production delay crisis. Furthermore, the airline decided to cut 2,000 jobs and withdraw from four airports.
“We are focused on controlling what we can control and have already taken swift action to address our financial underperformance and adjust for revised aircraft delivery expectations,” Bob Jordan said in a statement. “It’s been several years since we last studied this in-depth, and customer preference and expectations change over time.”
One of the things budget carrier Southwest Airlines is without a doubt most famous for is its open seating policy. Contrary to other airlines, it doesn’t have a first-class cabin or assigned seats. Instead, travellers wait in line, a line determined by whether or not they paid extra to move up in line and by when they checked in. Once aboard, they can choose their seat of preference. A unique customer experience but one which doesn’t go well with overly full flights and thus might need to be changed.
We’re looking into new initiatives, things like the way we seat and board our aircraft.
Bob Jordan, CEO of Southwest Airlines
Ryan Green, Southwest Airlines’ chief commercial officer, has already revealed the airline won’t impose baggage charges and customers will therefore still be able to check in one or two bags free of charge.
According to Savanthi Syth, an airline analyst from Raymond James Financial, changing the open seating strategy might not only bring less stress for current Southwest passengers but also attract new clients.
