Quantcast

Southwest Airlines announces new product updates during investor call

Southwest Airlines announces new product updates during investor call
Research
Webp txr36ytg6uuvd13i8xrjnuempd4m
Gary Leff Chief Financial Officer | View from the Wing

Southwest Airlines announced plans for redeye flights, premium seats, and assigned seating during their second quarter investor call on Thursday. However, many questions remain unanswered.

CEO Bob Jordan highlighted the demand for assigned seats, stating that current customers want them and that the lack of assigned seating drives some flyers to competitors. Surveys indicate 80% of current customers prefer assigned seats, with 86% of potential customers in agreement. Open seating is cited as the primary reason for customer defection to other airlines.

Regarding premium seating, one-third of seats across the fleet will have extra legroom. The majority of planes will be retrofitted with this product, including Boeing 737-700s. New aircraft will feature new Recaro seats while existing planes will reuse current ones. These premium seats will not include meals or a separate cabin section.

Get the Newsletter
Sign-up to receive weekly round up of news from Sky Industry News
By submitting, you agree to our Privacy Policy and Terms of Service. By providing your phone number you are opting in and consenting to receive recurring SMS/MMS messages, including automated texts, to that number from our short code. Msg & data rates may apply. Reply HELP for help, STOP to end. SMS opt-in will not be sold, rented, or shared.

Jordan mentioned that they are close to finalizing the cabin layout (LOPA) and expect a month-long FAA certification process before modifying 800 aircraft. The timeline for these changes will be revealed in September at their investor day, with plans to sell the product starting in 2025.

The CEO assured that Southwest does not intend to "take anything away" from other customers by introducing extra legroom seats. He emphasized maintaining an attractive pitch in the remainder of the cabin but did not clarify whether space would be taken from non-premium seats.

Southwest plans to maintain its current boarding style alongside assigned seating without significantly extending boarding times. Redeye flights will expand gradually and are expected to be fully integrated by Summer 2025.

While Hawaii remains an important destination for Rapid Rewards redemptions, Aruba ranks higher in popularity. Without redeyes, Hawaii remains largely accessible only from the West Coast.

Southwest's frequent sales do not necessarily indicate weak bookings but rather aim to drive traffic to their website where most tickets are sold directly.

Business travel volume has increased; however, there are fewer frequent travelers than pre-pandemic levels. Southwest also carries about twice as many bags as legacy carriers and three times more than ultra-low-cost carriers due to their policy of allowing bags to fly free—a key attraction for customers.

Southwest's new offerings aim to enhance passenger experience without overhauling existing customer-friendly policies entirely. They plan to sell extra legroom and assigned seats while retaining their unique boarding process and free baggage policy.

Organizations Included in this History
More News

United Airlines is set to expand its Premium Plus cabin in response to increasing demand for premium economy seats.

Jul 19, 2025

Emirates, the leading operator of Airbus A380 superjumbo jets, continues to find success with this aircraft as a flagship of its fleet.

Jul 19, 2025

An Antonov An-124 aircraft, owned by Antonov Airlines, has departed from Kyiv, Ukraine, after being grounded for over three years.

Jul 19, 2025

An Air China Airbus A350 and an SF Airlines Boeing 767-300ER were involved in a near-miss incident over Russian airspace.

Jul 19, 2025

Airbus is set to start equipping fuselages for its A321 aircraft in China.

Jul 19, 2025

For over five decades, the Boeing 747 has captured the attention of aviation enthusiasts and professionals.

Jul 19, 2025