Following pressure from ‘activist investors’, embattled chiefs at Southwest have announced a strategy to modernise the airline.

At the heart of the plan is a proposal to introduce an assigned seating model, which, incredibly, the airline had not introduced, even though the rest of the low-cost and short haul market switched years ago. The airline’s own research showed that 80% of its customers preferred an assigned seat and that this number increases the longer the flight is.

The airline expects to begin selling assigned seats in the second half of 2025, with its first flights operating with the new model in the first half of 2026.

Once the assigned seating model is in place, Southwest will again follow the rest of the industry and market research shows that the preference for an assigned seat with extra legroom offers broad appeal for both business and leisure travellers. Southwest will offer extra legroom options with up to five additional inches of pitch for approximately a third of its seats. New seating product options will drive demand and are expected to generate more revenue per passenger.

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A form of ‘priority boarding’ can also be offered when the new seating policy is in place.

One aspect that the airline has no plans to change is its ‘bags fly free’ policy. According to the carrier, this ‘remains the most important feature by far in setting Southwest apart from other airlines’.

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‘Based on Southwest’s research, the Company believes that any change in the current policy that provides every Customer two free checked bags would drive down demand and far outweigh any revenue gains created by imposing and collecting bag fees’ the company said in a statement.

Whether the plan will go far enough to placate investors, and notably Elliot Management, time will tell. Elliot has repeatedly criticised CEO Bob Jordan, accusing him of ‘playing with investor’s money’ and has urged him to step down, but as of the time of writing, Jordan remains in post.