Current:Home > ScamsSouthwest breaks with tradition and will assign seats; profit falls at Southwest and American -Nova Finance Academy
Southwest breaks with tradition and will assign seats; profit falls at Southwest and American
View
Date:2025-04-17 22:07:03
Southwest Airlines plans to drop its tradition of more than 50 years and start assigning seats and selling premium seating for customers who want more legroom.
The airline said Thursday that it has been studying seating options and is making the changes because passenger preferences have shifted. The moves could also generate revenue and boost financial performance.
Southwest made the announcement on the same day that both it and American Airlines reported a steep drop in second-quarter profit despite higher revenue.
Airlines are struggling with higher costs and reduced pricing power, especially on flights within the United States, as the industry adds flights faster than the growth in travel demand.
Southwest, based in Dallas, said its second-quarter profit fell 46% from a year earlier, to $367 million, as higher costs for labor, fuel and other expenses outstripped an increase in revenue. The results met Wall Street expectations.
American Airlines also reported a 46% drop in profit, to $717 million, and said it would break even in the third quarter — well below Wall Street expectations for the July-through-September period.
Southwest has used an open-seating model since its founding, with passengers lining up to board, then choosing their own seat once they are on the airplane. But, the airline said, preferences have “evolved” — as more travelers take longer flights, they want an assigned seat.
The airline is said it will offer redeye flights for the first time.
Southwest said that its first overnight, redeye flights will land on Feb. 14, 2025 in nonstop markets that include Las Vegas to Baltimore and Orlando; Los Angeles to Baltimore and Nashville; and Phoenix to Baltimore. It plans to phase in additional redeye flights over time.
veryGood! (5571)
Related
- Selena Gomez engaged to Benny Blanco after 1 year together: 'Forever begins now'
- 'Therapy speak' is everywhere, but it may make us less empathetic
- Jennifer Lawrence Showcases a Red Hot Look at 2023 Cannes Film Festival
- Biden administration says fentanyl-xylazine cocktail is a deadly national threat
- Sam Taylor
- The future terrified Nancy until a doctor gave her life-changing advice
- 'Ghost villages' of the Himalayas foreshadow a changing India
- 24-Hour Flash Deal: Save $225 on the Dyson Ball Animal 3 Extra Upright Vacuum
- Man can't find second winning lottery ticket, sues over $394 million jackpot, lawsuit says
- Shootings on Juneteenth weekend leave at least 12 dead, more than 100 injured
Ranking
- Opinion: Gianni Infantino, FIFA sell souls and 2034 World Cup for Saudi Arabia's billions
- Allergic to cats? There may be hope!
- Where gender-affirming care for youth is banned, intersex surgery may be allowed
- Attacks on Brazil's schools — often by former students — spur a search for solutions
- Juan Soto praise of Mets' future a tough sight for Yankees, but World Series goal remains
- Julian Sands' cause of death ruled 'undetermined' one month after remains were found
- This Week in Clean Economy: ARPA-E’s Clean Energy Bets a Hard Sell with Congress, Investors
- The future availability of abortion pills remains uncertain after conflicting rulings
Recommendation
Finally, good retirement news! Southwest pilots' plan is a bright spot, experts say
Amy Robach and T.J. Holmes Run Half Marathon Together After Being Replaced on GMA3
'Ghost villages' of the Himalayas foreshadow a changing India
What we know about the Indiana industrial fire that's forced residents to evacuate
Megan Fox's ex Brian Austin Green tells Machine Gun Kelly to 'grow up'
This Week in Clean Economy: Northeast States Bucking Carbon Emissions Trend
The dream of wiping out polio might need a rethink
FDA pulls the only approved drug for preventing premature birth off the market