Southwest Airlines Shifts to Assigned Seating with Falling Profits
Thursday, 25 July 2024, 10:38
Southwest Airlines' Organizational Change
For the first time in 50 years, Southwest Airlines will adopt assigned seating, moving away from its long-standing tradition of open seating.
Profit Declines Across Airlines
- Southwest Airlines reported a decrease in profits, aligning with Wall Street forecasts.
- American Airlines saw a 46% decline in profit, reporting earnings of $717 million.
Future Expectations
According to CEO Robert Isom, American Airlines did not meet initial profit expectations due in part to an abandoned sales strategy and an oversupply of domestic flights.
- The airline aims to break even in the third quarter.
- Both airlines will react to changing market demands.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.