Southwest Airlines is considering seat changes to increase profits
A Southwest Airlines Boeing 737-700 lands at Ronald Reagan Washington National Airport in Arlington, Virginia, on May 7, 2023.
Nicholas Economou | Nurfoto | Getty Images
southwest airlines CEO Bob Jordan told CNBC on Thursday that the airline is considering changes to its single-class, open-seat cabins to improve revenue. This could be the biggest change in the company's history.
“We're looking at new approaches to things like the seats on the aircraft and the way people board the aircraft,” Jordan said in an interview after the flight. Disappointing first quarter report.
All about the Southwest –boeing The 737 has one economy class cabin and does not have assigned seats, but we do offer early boarding for a fee so customers can get a seat of their choice. Aiming to minimize their costs and complexity, the company has focused on keeping its products simple and user-friendly for many years.
On the other hand, rivals delta and united It has touted high revenue growth for business class and premium seats. strong upsell rate.
Analysts have repeatedly asked Southwest Airlines about premium seating and additional fee opportunities. (The airline does not charge the traveler for his first two checked bags.)
Most U.S. airlines charge travelers to select many of their seats in advance, even if they don't have enough legroom. Eight US airlines — alaska, loyalist, Americandelta, frontier, jet blue, spirit The companies generated $4.2 billion in revenue from seat fees on their domestic networks in 2022, according to Jay Sorensen, aviation supplementary revenue expert at IdeaWorksCompany.
Jordan said no decisions have been made yet as to what changes Southwest Airlines will ultimately make, but said the study yielded “interesting” results.
“Customer preferences change over time,” Jordan says.
— CNBC Phil LeBeau contributed to this report.
Summarize this content to 100 words A Southwest Airlines Boeing 737-700 lands at Ronald Reagan Washington National Airport in Arlington, Virginia, on May 7, 2023.Nicholas Economou | Nurfoto | Getty Imagessouthwest airlines CEO Bob Jordan told CNBC on Thursday that the airline is considering changes to its single-class, open-seat cabins to improve revenue. This could be the biggest change in the company's history.”We're looking at new approaches to things like the seats on the aircraft and the way people board the aircraft,” Jordan said in an interview after the flight. Disappointing first quarter report.All about the Southwest -boeing The 737 has one economy class cabin and does not have assigned seats, but we do offer early boarding for a fee so customers can get a seat of their choice. Aiming to minimize their costs and complexity, the company has focused on keeping its products simple and user-friendly for many years.On the other hand, rivals delta and united It has touted high revenue growth for business class and premium seats. strong upsell rate. Analysts have repeatedly asked Southwest Airlines about premium seating and additional fee opportunities. (The airline does not charge the traveler for his first two checked bags.)Most U.S. airlines charge travelers to select many of their seats in advance, even if they don't have enough legroom. Eight US airlines — alaska, loyalist, Americandelta, frontier, jet blue, spirit The companies generated $4.2 billion in revenue from seat fees on their domestic networks in 2022, according to Jay Sorensen, aviation supplementary revenue expert at IdeaWorksCompany.Jordan said no decisions have been made yet as to what changes Southwest Airlines will ultimately make, but said the study yielded “interesting” results.”Customer preferences change over time,” Jordan says.— CNBC Phil LeBeau contributed to this report.Don't miss exclusive information on CNBC PROThursday's biggest analyst calls include: Nvidia, Meta, Tesla, IBM, UPS, Five Below, Amazon, TJX Companies and more.Here's where you can invest $1 million right now, according to the pros.Forget Nvidia: Morgan Stanley says Intel's much-hyped AI chips will boost 3 stocks globallyAs data centers proliferate and power demand doubles, Bank of America says these 5 stocks will drive the AI revolution.Earnings Handbook: A Guide to Trading Huge Weekly Reports, Including Meta Platforms
https://www.cnbc.com/2024/04/25/southwest-weighing-cabin-changes-to-drive-revenue.html Southwest Airlines is considering seat changes to increase profits
