Core Points - Southwest Airlines will implement assigned seating for the first time on January 27, 2025, ending over 50 years of open seating policy [1][2] - The airline aims to generate new revenue streams, projecting an addition of $800 million to earnings before interest and taxes in 2025 and $1.7 billion in 2026 [2][3] - The changes are part of a broader overhaul of Southwest's business model, which includes charging for checked bags and introducing new fare types [3][4] Business Model Changes - The new boarding process will feature eight groups based on seat selection, status, and other factors, replacing the previous A-B-C group system [6][7] - Elite frequent flyers and top-tier ticket holders will be prioritized in the first two boarding groups, while other ticket holders will be assigned to groups three through eight based on their seat location [6][7] - The airline has utilized computer models and live tests to ensure that the new policies do not slow down boarding processes [4][5]