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Southwest Airlines Investor Day
Southwest Airlines Bob Jordan responds to questions during a news conference at the company's headquarters in Dallas, Thursday, Sept. 26, 2024. (AP Photo/Tony Gutierrez)

Southwest Airlines says it will introduce assigned seats and premium perks in 2026

Southwest Airlines executives have unveiled their vision for turning the carrier into an airline that gives passengers assigned seats, charges them extra for more legroom and offers red-eye flights but bags still fly free

By DAVID KOENIG
Published - Sep 26, 2024, 08:05 PM ET
Last Updated - Dec 16, 2024, 06:51 PM EST

DALLAS (AP) — Southwest Airlines executives on Thursday unveiled their vision for Southwest 2.0, an airline that for the first time will give passengers assigned seats, charge them extra for more legroom and offer red-eye flights. And bags still will fly free.

The airline will also repackage its sale of vacation packages. It will seek partnerships with international airlines, starting with Icelandair next year, that executives say will make Southwest credit cards and frequent-flyer program more attractive.

The changes will amount to the biggest ever at Southwest, which is the original low-cost airline but is now well into middle age and suffering from sagging financial results.

Southwest executives pitched the new offerings as they came under increasing pressure from an activist investor who wants to replace the airline's management and force a review of its strategy. Southwest's annual profit is on pace to decline for a third straight year, and its stock price has fallen by more than half since early 2021.

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