Southwest Airlines Unveils Major Changes and Plans

Southwest Airlines is implementing significant changes, including the end of its 50-year open seating policy, transitioning to assigned seating starting in early 2026. The airline is redesigning its aircraft interiors, introducing features like enhanced legroom, in-seat power, and additional overhead bin space, while also maintaining its free checked bag policy. The three-year transformation plan, dubbed 'Southwest. Even Better,' aims to boost customer experience and profitability, with a target of $4 billion in earnings by 2027. As part of this initiative, the airline is launching new flight services, including nonstop routes from Memphis to Nashville, and plans to cut a third of its flights from Atlanta in response to financial pressures. Additionally, Southwest is making governance changes on its board, appointing Robert Fornaro and reducing member numbers to enhance oversight. These efforts are partly driven by demands from activist investors seeking improved financial performance.