Southwest Airlines to Assign Seats, Boost Revenue

Southwest Airlines is ending its long-standing open seating policy, opting instead for assigned seating and premium seating options, a move driven by pressure from activist investor Elliott Management and a need to boost revenue amidst declining profits. Elliott Management, which holds a $1.9 billion stake in Southwest, has been vocal about the need for new leadership and strategic changes to improve financial performance. The change comes as Southwest faces stiff competition from other major airlines and rising operational costs. Southwest will also introduce redeye flights and enhance in-flight amenities, aiming to attract a broader customer base. Despite the announced changes, reactions from loyal customers have been mixed, with some expressing concerns over the potential loss of Southwest's unique service model. The airline expects these transformations to significantly increase its revenue, potentially adding up to $3 billion annually.