Southwest Airlines to make big change to its hated boarding process - and it will likley mean paying more

Southwest Airlines is looking at changing its open seating policy - in a bid to boost profits. 

CEO Bob Jordan announced plans to revamp the airline's boarding and seating procedures as part of efforts to bolster its financial health.

The airline revealed last week it lost $231 million over the first three months of 2024.

'We're looking into new initiatives - things like the way we seat and board our aircraft,' Jordan said in an interview with CNBC.

He said more information would not come until September, but that any change would need to generate significant new revenue - which suggests charging for passengers to pick seats.

Southwest sparked vacation chaos last week when it announced it was axing flights to four airports and firing 2,000 staff.

Southwest Airlines CEO Bob Jordan announced on Thursday plans to potentially revamp the airline's boarding and seating procedures

Southwest allows open seating - meaning passengers can sit wherever they want. But it can create a scramble to get on board

Since it began flying in the 1960s, Dallas-based Southwest Airlines has distinguished itself from competitors with a very different seating approach. 

Unlike traditional airlines, Southwest does not assign seats on tickets. 

Instead, passengers board in a specific order based on factors like loyalty program status, how early they checked-in, and whether they paid extra for early boarding.

Once on board, passengers can sit in any available seat.

Every other major US airline sells first- or business-class seats with more room and amenities. 

The likes of Delta, American and United assign seats before passengers arrive at the airport. 

Increasingly, these airlines charge extra if economy-class passengers want to pick a particular seat, such as one in an exit row or near the front of the cabin.

Those policies generate significant 'ancillary revenue.'  Eight US carriers - the three above plus Allegiant,, Frontier, JetBlue and Spirit - took a total of $4.2 billion from seating fees in their domestic networks in 2022, according to WorksCompany.

A change to its boarding process would likley see it following the likes of Delta, experts say. This would mean charging customers

Southwest say they are studying possible changes but won't have anything to announce until September. 

Soutwest CEO Robert Jordan is looking at changing its longstanding open seating 

That tease is leading to speculation about whether Southwest might ditch some longstanding traditions, including the practice of passengers picking their own seats only after they board a plane.

CEO Robert Jordan says he is proud of Southwest's 'product,' but it was developed when flights weren't as full as they are today, and customers' preferences change over time, prompting the 'deep dive' into 'transformational options' in boarding and seating.

'Early indications, both for our customers and for Southwest, look pretty darn interesting,' he told analysts and reporters Thursday.  

Jordan said any changes must generate significant new revenue and can't slow down flights. 

Beyond that, he was deliberately and repeatedly vague, but executives did indicate that two possible changes have been ruled out already.

Ryan Green, Southwest's chief commercial officer, said the airline won't impose baggage charges - it's the only U.S. carrier that lets passenger check one or two bags for free. 

He said Southwest also won't install curtains like those that separate premium cabins from the economy-class section on other airlines.

Savanthi Syth, an airlines analyst with Raymond James Financial, said the lack of assigned seating is 'a huge pain point for passengers,' although a shrinking contingent still likes it. 

Syth thinks passengers would prefer the ability to select a seat in advance to trying to get a better spot in the boarding line.

'More importantly, I think it opens you up to a greater pool of passengers that would not consider (Southwest) because of the stress of the current process,' she said. 

Southwest said last week it lost $231 million over the first three months of 2024

'This is particularly important now that Southwest has lost the differentiation of no change or cancellations fees.' 

Southwest's closest rivals dropped change fees too during the pandemic.

Syth is less convinced that Southwest needs a first-class cabin, but she thinks adding extra-legroom seats could be attractive. 

'There are plenty of tall people who could use the extra space,' she said.