Southwest Airlines has announced a significant departure from its long-standing open seating policy, opting for assigned seating and introducing premium seating options with extra legroom. This change, influenced by customer feedback indicating a preference for assigned seating, aims to enhance the customer experience and improve financial performance amid rising competition and increased operational costs. CEO Bob Jordan stated that 80% of current and potential customers favor assigned seating, reflecting evolving preferences, especially on longer flights. Additionally, the airline plans to launch redeye flights starting in February 2025 and has reported a second-quarter net income of $367 million, rebounding from a prior loss. The decision comes in the wake of pressure from activist investor Elliott Management, which seeks a more independent board. The changes are expected to unlock new revenue sources for the airline, which has faced challenges in maintaining profitability.