Southwest made the announcement on the same day that both it and American Airlines reported a steep drop in second-quarter profit despite higher revenue.
INDIANAPOLIS — Southwest Airlines plans to drop its tradition of more than 50 years and start assigning seats and selling premium seating for customers who want more legroom.
Airlines are struggling with higher costs and reduced pricing power, especially on flights within the United States, as the industry adds flights faster than the growth in travel demand. American Airlines also reported a 46% drop in profit, to $717 million, and said it would break even in the third quarter — well below Wall Street expectations for the July-through-September period.
Southwest has used an open-seating model since its founding, with passengers lining up to board, then choosing their own seat once they are on the airplane. But, the airline said, preferences have “evolved” — as more travelers take longer flights, they want an assigned seat.WATCH | Indiana's Latest Headlines
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Southwest breaks with tradition and will assign seats; profit falls at Southwest and AmericanSouthwest Airlines is doing away with a 50-year tradition and plans to start assigning seats. The airline is also looking to introduce redeye flights.
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