Southwest to get rid of open seating, offer extra legroom in biggest shift in its history

Core Insights - Southwest Airlines is making significant changes to its business model, including ending open seating and introducing extra legroom seats, in response to pressure to increase revenue [1][2] - The airline plans to start selling flights with extra legroom in 2025 and will also introduce overnight flights [1] - The changes come after activist investor Elliott Investment Management acquired a nearly $2 billion stake in the airline and called for new leadership due to underperformance compared to competitors [1] Group 1 - Southwest Airlines has historically maintained a simple business model that has generated steady profits for over five decades [2] - The CEO of Southwest Airlines, Bob Jordan, indicated that the lack of assigned seating was manageable when flights were less full [2] - Analysts have criticized Southwest for its slow adaptation to market changes, noting that rival airlines have already implemented various upselling options [2] Group 2 - More details regarding the upcoming changes will be provided by Southwest Airlines during an investor day at the end of September [2]