Southwest Airlines ends open seating, introduces red-eye flights

DALLAS – Big changes are coming to Southwest Airlines .

The Dallas-based airline announced Thursday it is putting an end to its open seating policy, will begin offering premium seating and is introducing redeye flight options.

The airline said the changes are the next step in a "continuing strategic transformation" and are designed to "elevate the customer experience."

According to research conducted by Southwest, 80% of customers and 86% of potential customers said they prefer an assigned seat.

In addition to assigning seats, Southwest will offer premium, extended legroom portions of plane cabins. One-third of seats will offer the extended option.

Southwest will sell tickets for redeye flights starting Thursday. The first overnight flights will land on Valentine's Day next year in five initial nonstop markets: Las Vegas to Baltimore and Orlando; Los Angeles to Baltimore and Nashville; and Phoenix to Baltimore. Southwest said it plans to phase in additional redeye flying.

"We've encouraged the company to implement that for years. It's a long overdue, and a welcomed change," said a spokesperson for the Southwest Flight Attendants Association, TWU Local 556. "It will help eliminate boarding challenges. It will also create a manifest which will help with safety and security for our flight attendants."

The announcement came as Southwest reported that its second-quarter profit dropped to $367 million — down 46% from a year earlier.

Airlines are grappling with reduced pricing power while facing higher costs as flights are being added faster than growth in demand for travel.

Ryan Green, previously the executive vice president and chief commercial officer, will take on the new role of executive vice president of commercial transformation to lead the development of the Southwest initiatives.

President and CEO of Southwest, Bob Jordan, said the changes are part of "a comprehensive upgrade to the Southwest experience."

"Moving to assigned seating and offering premium legroom options will be a transformational change that cuts across almost all aspects of the company," Jordan said in a news release about the changes. "Although our unique open seating model has been a part of Southwest Airlines since our inception, our thoughtful and extensive research makes it clear this is the right choice— at the right time—for our customers, our people, and our shareholders. We are excited to incorporate customer and employee feedback to design a unique experience that only Southwest can deliver."

These changes come after mounting pressure from Elliott Management to boost profits. The hedge fund has called on the airline to enhance its board of directors, upgrade leadership and take a comprehensive business review.

In May, the airline began listing airfares on Google Flights , making it easier for travelers to compare their options on a single dashboard.

A Southwest spokesperson said the move, which the carrier said it's testing, broadens its reach with consumers while allowing the company to retain control of the booking process.

The Associated Press contributed to this report.