Southwest Airlines' Strategic Changes

Southwest Airlines is implementing significant changes as part of its Southwest 2.0 plan aimed at reversing its declining profits and stock prices. The airline plans to introduce assigned seating by late 2025, a shift from its long-standing open seating policy, as customer feedback indicates that 80% of passengers prefer knowing their seat prior to arrival. Additionally, Southwest will enhance its offerings, including a premium seating option with extra legroom, which will involve reallocating space from standard seats. These updates are crucial as the airline looks to improve operational efficiency, marked by a new push for red-eye flights to maximize aircraft utilization.