Southwest Airlines shared massive changes to its model in Sept. 2024.

CEO Bob Jordan framed the changes as necessary for the airline’s future.

“We’re now ushering in a new era at Southwest, moving swiftly and deliberately to transform the Company by elevating the Customer Experience, improving financial performance, and driving sustainable Shareholder value,” he said in a press release.

Southwest says the changes are designed to give customers more choice while improving profitability after years of margin pressure and rising costs. Executives have argued that offering paid options for seating, baggage, and fare flexibility allows price-sensitive travelers to pay less while higher-value customers can customize their experience.

Here’s what it’s like to book a ticket with Southwest now that the changes have been enacted.

What it’s like to book Southwest now

For six years, I flew from Hartford, Conn., to Baltimore, Maryland, at least once a month. I also went to Las Vegas 4-6 times a year, flew to Florida at least once, and had a few random other trips.

For nearly all of those flights, I booked Southwest Airlines because it did not charge for bags, and my loyalty status guaranteed I would board before at least half of the other passengers. I also got free, same-day standby, so if my meetings ended early, I could usually hop on an earlier flight home.

Booking was simple because the price was the price. The only add-ons offered were $8 internet, Early-Bird Check-in (which I did not need because of my loyalty status), and Business-Class boarding, which guaranteed a place in the first 15 non-preboard customers to get on the plane.

It was a simple system that valued simplicity and loyalty. Southwest literally mocked other airlines and created a word to describe its lack of fees: “transfarency.”

The system worked for customers, but apparently not the airline. Pushed by activist investors, management dropped their customer-friendly approach and moved to a revenue-driven model.

I recently booked a flight to Las Vegas from Fort Lauderdale and was surprised at just how unpleasant Southwest made the process.

Here’s what it’s like booking a Southwest flight now

My college roommate scored some Las Vegas Knights tickets for late January, so I decided to book a quick trip to the Strip for a three-day weekend. And while I have not been to Vegas often and lost my loyalty status with Caesars, the casino company still comped me a regular room at The Ling, which I upgraded to a suite for a total cost of $150.

Since Spirit Airlines is in danger of shutting down and Frontier Airlines, where I have some status, does not offer internet, I opted to book with Southwest. I started that process by inputting my dates on the airline’s website.

The cheapest flight to Las Vegas was marked for $179, but that does not include any sort of seat selection, so I opted for “Choice,” which raised my price to $214, one way. All flights offered were one-stop, which is not uncommon when heading from Florida to Las Vegas.

A Choice seat came with an included carry-on bag, but a checked bag would be extra. Since I’m only going for the weekend, a checked bag won’t be needed, but I like to work on flights, so I need an aisle seat.

My return flight was $97 Basic and $137 for Choice, which I chose. At this point, my total costs came in at $349.36.

That’s where the new Southwest actually surprised me. I could upgrade my seat for more legroom and earlier boarding, which got expensive quickly with four separate flight legs, but the standard seat included mid and back-of-the-plane aisle and window seats.

I would need to purchase internet access once onboard at $8 per leg, adding $32 plus tax to my total. Still, while my costs could have doubled had I needed checked bags, a roomier seat, or earlier boarding, by not booking those things, I booked my flight for less than I would have spent on Spirit or Frontier once I paid for seat assignments and my carry-on.

Timeline of Southwest Airlines Changes

  • Mar.-Oct. 2023: Southwest begins changing its customer experience, including same-day change/standby options and brand modernization efforts (new cabin designs, uniforms), according to Southwest Airlines.
  • Feb. 2024: Brand modernization announced, including refreshed cabin design and employee uniforms.
  • July 2024: Assigned and premium seating officially announced as part of future customer experience enhancements. Redeye overnight flights introduced.
  • Sept. 2024: Southwest holds investor day outlining a three-year strategic plan focusing on profitability, new seat products, and global partners.
    Source: Southwest Airlines
  • Feb. 13, 2025: Southwest launches its first scheduled overnight redeye flights and the Icelandair partnership, broadening reach and connecting networks.
  • Mar. 11, 2025: Southwest unveils major new policies to drive revenue growth:
    Introduces Basic fare tier.

    Flight credits begin to expire (six months to one year).

    Charges for checked bags for most passengers (breaking the longtime free “Bags Fly Free” policy for general passengers).

    Adjustments to Rapid Rewards earning/redemption rates.

    Source: Southwest Airlines

  • May 28, 2025: New fare structure and baggage fee policy takes effect for flights booked on/after this date.
  • July 2025 (July 29): Southwest begins selling assigned seating for future flights (transition from the 50-year open seating model).
  • Throughout 2025: Fleet retrofit and cabin upgrades begin (premium seats with extra legroom, new interiors, charging/storage improvements).
  • 2025 (through year): First major layoffs in 53 years with 15% of corporate workforce cut, part of restructuring, according to AP News.
  • Jan. 1, 2026 (approx.): Assigned seating fully rolls out on flights (branded “Seatisfaction”), ending open seating tradition, reported the Houston Chronicle.
  • Jan. 27, 2026: Effective date for several changes including:
    Assigned seating fully implemented across the network.

    New plus-size passenger policy requiring advance purchase of second seat if needed.

  • Early 2026: Premium seating and extra legroom options are introduced more broadly on flights, part of the revenue diversification plan, according to Business Traveler.
Southwest Airlines has made a lot of operational changes.

Shutterstock

Southwest Airlines defends its changes

Southwest Airlines has tried to frame its changes as being about choice, not added revenue. That’s at least how its ads have presented things, as they show people being really excited that the airline now has assigned seating (with no mention of the extra cost of that).

The airline has been more honest during its earnings calls.

“We continued to make meaningful progress against our transformational plan in the second quarter, most notably implementing bag fees and a basic economy product,” CEO Bob Jordan said in Southwest’s second-quarter earnings release.

Jordan seems happy with the airline’s progress.

“These initiatives are coming online quickly, and we are pleased with performance thus far, including bag fee revenue exceeding expectations. We are encouraged by the incremental fare product buy-up that is already occurring at this early stage and in advance of assigned and premium seating that we will begin selling next week for flights beginning January 2026,” he added.

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He was clear that these changes have added to the airline’s bottom line.

“We have already realized approximately one-third of our $1.8 billion 2025 initiative EBIT target in the first half of 2025 and remain highly confident in our ability to realize the remaining amount during the second half of the year, according to our plan,” he shared.

Southwest Airlines set clear financial goals

Southwest shared its revenue goals in an earlier press release.

The company’s three-year financial plan is expected to support its long-term targets for sustainable profitability:

  • Approximately $4 billion in cumulative incremental run rate EBIT contribution in 2027.
  • Expects to deliver in 2027: Approximately $4 billion in cumulative incremental earnings before interest and taxes (EBIT) contribution and after-tax return on invested capital (ROIC) of 15% or greater, well above weighted average cost of capital (WACC).

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Outside experts share Southwest opinions

“Southwest will benefit from a ‘material upgrade’ in its strategy next year, and as investors’ concerns about potential market-share losses begin to fade,” Barclays analyst Brandon Oglenski said in a note, reported Marketwatch.

He sees the airline’s changes as being a financial positive.

“We expect the carrier to see material improvement in relative revenue generation, especially in early 2026,” as the seating options become available, Oglenski wrote, adding that the next year is looking to be “materially more profitable.”

Not every analyst sees the changes as fully positive.

“Items aimed at improving profitability such as the introduction of bag fees and expiring flight credits risk eroding Southwest’s competitive strengths relative to peers,” Fitch Ratings said in a negative ratings outlook for the airline, reported Veronika Bondarenko at TheStreet.

Some experts question how Southwest’s customers will react to the added fees.

“Southwest built their brand on transparency — they called it ‘Transfarency’ – but now they’re adopting the same psychological tricks that other airlines use to extract more money from travelers,” said Tenscope‘s Jovan Babovic, a user experience design expert whose employer studies how companies influence consumer behavior.

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