Southwest Airlines is undertaking a strategic transformation to improve customer experience, boost financial performance, and drive shareholder value. The initiative includes significant changes, including assigned seating, premium seating options, and the introduction of red-eye flights.

“Moving to assigned seating and offering premium legroom options will be a transformational change that cuts across almost all aspects of the Company,” Bob Jordan, president, CEO, and vice chairman of the board, said in a statement. “Although our unique open seating model has been a part of Southwest Airlines since our inception, our thoughtful and extensive research makes it clear this is the right choice—at the right time—for our Customers, our People, and our Shareholders.”

What changes can we expect?

Assigned seats: Southwest will move away from its traditional open seating model and will assign seats on all flights. This decision follows extensive customer research and operational testing.

Premium seating options: Approximately one-third of the seats will feature extended legroom, in line with industry standards. This change is part of Southwest’s broader modernization efforts, which also include upgrades like faster Wi-Fi, in-seat power, and larger overhead bins.

Red-eye flights: Southwest is launching overnight red-eye flights starting on Valentine’s Day 2025. These initial routes will connect Las Vegas, Los Angeles, and Phoenix with Baltimore, Orlando, and Nashville. The 24-hour operation is expected to generate additional revenue and cost savings, enabling Southwest to expand without additional aircraft purchases.

More details to come 

The airline will provide more details on these initiatives, including product designs and financial implications, during its Investor Day in late September. The company expects the transition to assigned and premium seating to be seamless and aims to start bookings in 2025, pending necessary regulatory approvals.

Shares of Southwest Airlines stock were down more than 5% in premarket trading Thursday following the news.

Founded in 1971, Southwest Airlines is the only major airline in the U.S. that is also a low-cost carrier. It will serve 117 airports in 11 countries effective August 5. The airline announced in April that it would be suspending service at four U.S. airports, in part because of Boeing aircraft delivery delays.