On 27 January 2026, Southwest Airlines made history by ending its 54-year-old open seating policy. For the first time since the airline began flying in 1971, passengers now choose an assigned seat at the time of booking. The change, driven by shifting customer preferences and intense pressure from investors, marks the end of one of the most recognisable traditions in American aviation.
Southwest’s open seating system had been unique in the industry. Rather than selecting a seat when buying a ticket, passengers received a boarding position — for example, “A 33” — when they checked in online, usually 24 hours before departure. Once on board, they could sit wherever they liked. The airline held a symbolic farewell: its last open-seating flight, WN1971, departed Honolulu on the evening of 26 January and landed in Los Angeles early the following morning.
The decision to switch was announced in July 2024 by CEO Bob Jordan, who told investors that research showed 80% of Southwest customers would prefer an assigned seat. The timing also reflected strong pressure from Elliott Investment Management, an activist investment firm that had built up a stake of around 16% in Southwest and was pushing hard for changes to improve the airline’s financial performance. By late 2024, Elliott had replaced two-thirds of Southwest’s board of directors, and a series of major changes followed: the first ever mass layoffs in the airline’s history, the end of its famous “bags fly free” policy, and now the end of open seating.
The new boarding process divides passengers into eight groups based on ticket type and frequent flyer status. Elite members and passengers on premium fares board first, while those on standard and basic fares board last. Passengers travelling together are assigned to the same boarding group. New seat categories have also been introduced, including Extra Legroom seats at exit rows and Preferred seats closer to the front of the cabin.
For the aviation industry, the change is significant. Southwest had always stood out from its competitors by keeping things simple: no assigned seats, no bag fees, and low base fares. That model is now largely gone. The airline has faced some backlash from loyal customers who valued the old approach, but early financial results suggest the changes are working. Elliott Investment Management, which had once held a 16% stake, had already begun selling shares in late 2025 — a sign that, from the investor’s perspective at least, the job was done.
Looking ahead, Southwest is continuing to transform its product. Redeye overnight flights are being added for the first time, and the airline is making a deliberate effort to attract business travellers who previously chose other carriers. Whether these changes will win over both loyal customers and new passengers remains the central question for Southwest as it enters this new chapter.
Key vocabulary:
- open seating – a system where passengers do not have an assigned seat; instead, they choose any available seat once they board the aircraft
- boarding position – a number or letter-number combination (e.g. “A 33”) that tells a passenger when they may join the queue to board the plane, but not which seat they will sit in
- activist investor – a person or company that buys a significant share of a business in order to push for major changes to strategy, management, or operations
- stake – the percentage of a company’s shares owned by an investor; a large stake gives the owner significant influence over the company’s decisions
- frequent flyer status – a loyalty tier earned by flying regularly with an airline; passengers with higher status typically receive benefits such as earlier boarding, seat upgrades, and lounge access
- redeye flight – an overnight flight that departs late at night and arrives early the next morning, named after the tired, red eyes passengers often have after a sleepless journey
CEFR Level B1-B2 / ICAO Level 4-5