In the event you’re a daily Southwest Airways buyer, it’s possible you’ll begin noticing some large adjustments on the airline ahead of you would possibly anticipate.
Late final month, executives on the Dallas-based service laid out an enormous industrial overhaul, together with extra particulars on the airline’s plan to ditch its half-century-old open seating policy in favor of its first-ever assigned and extra-legroom seats.
As TPG reported last week, these assigned seats are set to go on sale in late 2025 for flights departing within the first half of 2026.
You will not have to attend till 2026 to see the extra-legroom seats showing on some planes, although. And lengthy earlier than the airline’s most seismic adjustments go reside, Southwest is planning a shift in the way it costs a few of its present add-on boarding merchandise.
Additional legroom seats to seem subsequent yr
Southwest will not begin promoting its assigned seats — or extra-legroom seat assignments — till later subsequent yr. Nonetheless, planes sporting the extra spacious rows ought to begin rolling out quietly, showing on a few of Southwest’s flights throughout the course of subsequent yr.
Between now and late 2025, the airline has an enormous endeavor: It has to retrofit its complete fleet of round 800 jets with the brand new seating configurations. It will begin with its bigger Boeing 737-800 and 737 MAX 8 jets after which transfer on to its 737-700s.
Southwest hopes to win Federal Aviation Administration approval for the brand new cabin configurations by early subsequent yr, executives mentioned; the airline is already working to safe the mandatory permissions.
“We anticipate the engineering work to be full and certification in hand in order that we will start our retrofit on our bigger plane within the first quarter of 2025,” Ryan Inexperienced, government vp of economic transformation, informed traders final week.
As soon as it will get began, Southwest hopes to retrofit between 50 and 100 jets per 30 days, slowing the tempo throughout the summer time months so fewer planes are out of service throughout a peak journey interval.
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As soon as crews end reconfiguring a airplane, it will not simply sit parked till assigned seating begins. As a substitute, it will rejoin the fleet and return to Southwest’s flight schedule. In spite of everything, planes do not assist the airline generate cash whereas they’re out of service.
Which means some fortunate passengers ought to get a sneak peek at Southwest’s extra-legroom seats earlier than the airline’s open-seating period technically winds down.
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Passengers will probably be stunned
Till Southwest’s assigned seating setup absolutely launches in early 2026, there probably will not be a simple technique to know whether or not your Southwest airplane has already been up to date with the extra-legroom seats.
Nonetheless, it is attainable you will get an inkling on the gate: Southwest tells TPG gate brokers would possibly, in some instances, alert prospects concerning the extra spacious choices simply previous to departure.
The seats, which Southwest says will characterize a couple of third of the cabin (nearer to 40% on some jets), are more likely to be in scorching demand on these flights throughout the closing months of open seating.
In reality, the airline expects the seats to drive renewed curiosity in its current EarlyBird and Upgraded Boarding merchandise; these merchandise assist passengers safe an earlier spot within the boarding line and, by extension, an earlier seat choose in its present first come, first served seating mannequin.
“Actually, as you get to form of a essential mass of the fleet, and you’ve got a flight that is going to Hawaii that has been retrofit, and you’ve got prolonged legroom on that airplane … the demand for Upgraded Boarding on the gate ought to go up,” Inexperienced mentioned, for instance.
Dynamic pricing deliberate for present boarding merchandise
To that finish, Southwest executives teased one other change that is simply across the nook for its current add-on service. “We’ll be dynamically pricing these ancillaries as effectively. That is not one thing we do at present with EarlyBird or Upgraded Boarding,” Inexperienced mentioned, noting these adjustments will go reside someday in late 2024 or early 2025.
What’s dynamic pricing?
Dynamic pricing primarily means the pricing construction is fluid and may fluctuate up or down primarily based on a wide range of algorithm-dictated elements. Provide and demand are chief amongst these elements. It is an more and more frequent pricing mannequin all through the business.
Notably, a rising variety of airways now dynamically value award flights as a substitute of utilizing the award charts that after made factors and miles redemptions extra predictable.
As an illustration, it is conceivable that the airline would possibly discover prospects keen to pay a premium for Upgraded Boarding on an extended flight to, say, Hawaii in hopes of securing one of many extra spacious seats.
Nonetheless, it is not but clear how such a dynamic pricing mannequin might in the end have an effect on the price of Southwest’s present add-on providers earlier than the service switches over to assigned seating. Executives appeared assured the merchandise ought to make more cash as extra-legroom-equipped jets start to enter service subsequent yr.
“It is going take us a while to get the mannequin educated on that, however I believe there’s most likely some upside in present boarding product ancillary income after we get that executed,” Inexperienced mentioned.
It is price noting that Southwest already makes use of a reasonably fluid pricing mannequin for EarlyBird and Upgraded Boarding. Earlier this yr, it hiked the top-level fees on both amid a wave of airways elevating ancillary charges.
EarlyBird — which routinely reserves passengers’ place in line 36 hours earlier than departure — prices $15 to $99 one-way, per traveler.
Upgraded Boarding — which ensures passengers an A1-15 boarding place — prices between $30 and $149 per section, per traveler.
Once more, all of this can be non permanent: EarlyBird and Upgraded Boarding are merchandise distinctive to Southwest’s open seating idea, they usually might be tweaked (or disappear altogether) as Southwest’s change to assigned seating takes maintain.
For now, Southwest prospects could have numerous adjustments to digest within the subsequent yr.
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