Southwest Airlines Embraces Assigned Seats, Premium Services in Bid to Boost Earnings

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Southwest Airlines,Assigned Seats,Premium Services

In a significant shift from its budget airline model, Southwest Airlines is introducing assigned seating, premium seats with extra legroom, and early boarding for premium customers. The changes are aimed at increasing revenue and addressing customer preferences for assigned seating, which has been cited as a reason some travelers choose competitors. The airline expects to generate $4 billion in additional earnings over the next three years.

Southwest Airlines is making major changes as it begins to offer services akin to standard non-budget airlines.On Thursday, Southwest Airlines unveiled plans to implement assigned seats and add premium seats with longer legroom. Those with premium seats will now be able to board first, the airline says. The airline says it will still continue to allow customers to check up to two bags for free as it says any change in policy would lower revenue.

RELATED STORY | FAA reviewing Southwest Airlines' safety protocol after latest low-flying plane incidentResearch from the airline shows 80% of Southwest customers and 86% of potential customers prefer an assigned seat. And when customers opt to stop flying with Southwest in favor of a competitor, the No. 1 reason they cite leaving is open seating.Another major change won’t be to the aircraft, but rather scheduling.

 

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