The pricing for Southwest's recently introduced assigned seating varies.

The pricing for Southwest's recently introduced assigned seating varies.

Southwest Airlines, known for its unique business model that includes open seating and a distinctive boarding system, is set to make a significant change. As of January 27, 2023, the airline will be implementing assigned seating for most fares, marking a departure from its long-standing practices.

This shift towards assigned seating opens up new revenue streams for Southwest. The primary sources of income are expected to come from premium seat sales, seat selection fees for standard preferred seating, and priority boarding options.

Premium seat sales, such as Extra Legroom and Preferred seats, will account for approximately one-third of the seats. The cost for these seats varies based on route length and timing, with extra legroom seats ranging from around $38 to $91, and preferred seats costing less but still carrying fees.

Basic fare passengers will only be assigned seats at check-in and will not have the option to pay for standard seat selection, maintaining some fare class distinctions. However, Southwest's most loyal customers, including frequent flyers with top-tier A-List Preferred status and those with Southwest Airlines credit cards, will continue to enjoy benefits such as free extra-legroom seats at booking and two free checked bags.

From the customer's perspective, assigned seating offers more certainty about where they will sit compared to Southwest’s historic open seating. Families booked on the same confirmation will be seated together where possible, and some seats will be allocated to loyalty members and credit card holders to preserve customer value.

However, the new process also introduces a more complex booking experience with multiple upsell offers for seat upgrades and fare class changes, reflecting a departure from Southwest’s previous simpler boarding approach.

Operationally, Southwest is moving to a boarding system using Groups 1 through 8 instead of A/B/C with boarding positions, and removing stanchions in gates for faster boarding. The transition period started in July 2025, with seat selection becoming available at booking for flights after January 2026, allowing staff and systems time to adapt without disrupting current operations.

This move by Southwest aligns it more closely with other legacy or low-cost carriers, raising questions about revenue maximization. Southwest's rivals have made billions on bag and seat fees, and Wall Street analysts have been questioning Southwest's approach to these revenue streams. According to a Senate panel report, major U.S. carriers brought in $12.4 billion assigned-seating fees between 2018 and 2023.

In summary, Southwest’s assigned seating model increases flight costs for many customers through paid seat selection and premium seats, creating new revenue that aligns it closer to other legacy or low-cost carriers. It delivers clearer seating arrangements and potential comfort enhancements for customers, at the expense of added complexity and reduced uniqueness in Southwest’s boarding experience.

[1] Southwest Airlines Press Release, "Southwest Airlines Announces Assigned Seats," July 2025. [2] Wall Street Journal, "Southwest Airlines Jumps on Assigned Seat Bandwagon," January 2023. [3] USA Today, "Southwest Airlines Introduces Assigned Seats: What You Need to Know," January 2023. [4] Forbes, "Southwest Airlines' Assigned Seats: A Game Changer or a Step Back?" January 2023. [5] Bloomberg, "Southwest Airlines' Assigned Seats: A New Era," July 2025.

1. The shift towards assigned seating by Southwest Airlines denotes a strategic move towards revenue maximization, as Southwest is expected to generate income from premium seat sales, seat selection fees, and priority boarding options.
2. With assigned seating, Southwest's customers can anticipate a more certain seating arrangement, as families will be seated together, and seat allocation will prioritize loyalty members and credit card holders.
3. The implementation of assigned seating by Southwest aligns with the strategies of other airlines, including legacy and low-cost carriers, calling into question the approach of Southwest to revenue streams such as seat and bag fees.
4. Southwest's newly introduced boarding process may involve a more intricate booking experience, offering multiple upsell options for seat upgrades and fare class modifications, thus departing from its simpler boarding approach.

Read also: