Southwest Airlines is set to end its 50-year open seating policy in favor of assigned seating and premium options, responding to customer preferences for assigned seating, which 80% of current and 86% of potential customers prefer. This change aims to enhance customer experience and unlock new revenue streams, as the airline faced a significant profit drop of 46% in Q2, with net income reported at $367 million. The new policy will also introduce red-eye flights starting February 14, 2025, on select routes. Bob Jordan, the airline's CEO, acknowledged that the company's outdated approach hindered its competitiveness and emphasized the need for modernization. While Southwest has long been known for its low-cost model and free checked bags, this shift could potentially lead to higher prices for travelers. The seating changes will be detailed further in September as the airline aims to adapt to evolving market demands.