CEO Bob Jordan acknowledged on the call that Southwest Airlines' recent financial performance is below expectations and emphasized that the company "owns those challenges" as they move towards new strategies.
Ryan Green stated that the transition to an assigned-seating model will take place in the first half of 2026, highlighting that the decision responds to customer preferences, noting 86% favor assigned seats.
A study showed that while "bags-fly-free" is an important differentiator for brand awareness, a significant majority of customers—80%—prefer the convenience of assigned seating over Southwest's traditional open-seating policy.
The shift to assigned seating illustrates Southwest's recognition that customer preferences are evolving, as their unique selling proposition of open seating is no longer attractive enough to retain potential customers.
#southwest-airlines #assigned-seating #open-seating-policy #customer-preferences #financial-performance
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