Southwest's New Policy Change Sparks Backlash—'Money Grab'

Newsweek

2 days ago

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Southwest Airlines has announced a major policy change that brings to an end the carrier's decades-long open seating system, sparking backlash and a claim that it is a "money grab."
The new assigned seating model, which allows passengers to pay in advance to select their seats, will roll out from January 27, 2026. It will apply to flights booked under the airline's updated fare bundles, which are already available for purchase.
One financial newspaper editorial labeled the shift "a money grab," while social media has been filled with criticism.
Newsweek contacted Southwest Airlines for comment and specific pricing information via email on Friday outside of usual working hours.
Why It Matters
The airline's open-seating model and "bags fly free" policy have long been cornerstones of its brand loyalty. Many loyal customers view the shift as a betrayal of the airline's founding identity and are publicly threatening to switch carriers.
The seating fees follow Southwest's May 2025 decision to end its free-checked-bag policy, introducing new baggage fees of $35 for the first bag and $45 for the second.
A Southwest Airlines Boeing 737-700 airplane prepares to takeoff at Ronald Reagan Washington National Airport in Arlington, Virginia, on July 10, 2025.
A Southwest Airlines Boeing 737-700 airplane prepares to takeoff at Ronald Reagan Washington National Airport in Arlington, Virginia, on July 10, 2025.
SAUL LOEB/AFP viaWhat To Know
Travelers can now pay to select their Southwest seats in advance on flights departing from January 27, 2026, including options for extra-legroom seating. Passengers who do not select a seat will be assigned one automatically at check-in. Seat selection fees are expected to vary depending on the seat type and route.
"Southwest® Customers will be able to choose from various fare bundles, some that offer the opportunity to select a seat during the booking process, as well as access to the different seat types—Extra Legroom, Preferred, and Standard. Customers will also be able to purchase a seat upgrade to elevate their travel experience," Southwest announced in a news release.
Some major airlines, such as American Airlines, still allow passengers to choose their seat for free when they book or, in the case of American Airlines, buy a Preferred Seat in a more favorable location or a Main Cabin Extra seat with more benefits. United Airlines offers assigned seating, with Basic Economy advance seat assignments starting at $15 per flight per person, similar to Delta.
While airlines argue the changes provide more options and clarity for customers, critics say it signals a shift toward profit-driven complexity and added passenger costs.
"If I am paying extra for all these things, I might as well fly a premium airline like Delta," said one traveler, cited by The U.S. Sun.
Some see the decision as abandoning what made the airline unique. A Wall Street Journal (WSJ) editorial labeled the shift "a money grab," while social media has been filled with criticism from travelers who feel the airline is no longer a budget-friendly option.
Industry analyst Henry Harteveldt, as per Visa Verge, stated: "This is how you destroy a brand. This is how you destroy customer loyalty. And this, I think, is going to send Southwest into a financial tailspin."
A recent Senate report revealed that the five largest U.S. airlines collected $12.4 billion in seat selection fees between 2018 and 2023. In some cases, revenue from seat fees has surpassed what airlines earn from checked baggage.
The report found that airlines are increasingly using algorithms and customer data to personalize pricing and maximize revenue. This is especially true for seat selection fees, which can vary widely depending on the route, demand, and from customer to customer.
Southwest CEO Bob Jordan defended the decision, as reported by The New York Times, calling it "exciting" and saying it aligns with customer demand for more certainty and family-friendly seating. The airline estimates the changes will generate $1.5 billion in annual seat revenue and contribute to a $4.3 billion increase in overall operating profit by 2026.
What People Are Saying
Dawn Gilbertson, Travel Columnist, WSJ: "This is a money grab, and it will no doubt succeed. Southwest was criticized for years by Wall Street for leaving fee money on the table. Now it will get its share. The airline's executives said last week that they already have seen evidence of travelers trading up for tickets with more perks."
Southwest Airlines in an emailed statement to Newsweek on Friday: "Our new fare bundles are out for sale for travel beginning Jan. 27, 2026, and beyond. On that date, we'll move to assigned seating and sunset our open seating model.
As for pricing, that's a regulated topic that we cannot discuss publicly outside our required reporting to the U.S. Department of Transportation. Searching around on Southwest.com would return only anecdotal results as route, stage length, demand, date of travel, date of booking, etc, can all affect fares."
Former Southwest Board Chairman Rakesh Gangwal, in a statement announcing new Board Chair Doug Brookes: "In a short period of one year, Southwest implemented a massive overhaul of its business model that will serve it well for years to come. Not many companies have the courage and conviction to fundamentally change ingrained aspects of their business model for the benefit of all their stakeholders. The transformation of Southwest Airlines is well underway."
Tony Roach, Executive Vice President Customer & Brand, at Southwest Airlines, in a statement: "Our Customers want more choice and greater control over their travel experience … Assigned seating unlocks new opportunities for our Customers—including the ability to select Extra Legroom seats—and removes the uncertainty of not knowing where they will sit in the cabin. This is an important step in our evolution, and we're excited to pair these enhancements with our legendary Customer Service."
Southwest CEO Bob Jordan in an interview with The New York Times: "You have to keep talking because sometimes people don't understand what you're doing. What I find is that once folks know where we're headed, they're very excited. I think you just have to play through this period of change because change is hard. Our employees are excited about the changes."
What Happens Next
The seat assignment option is now available for bookings, but the new boarding and seating systems won't take effect until flights departing January 27, 2026. Passengers who hold Southwest Rapid Rewards credit cards or A-list status may continue to access certain seats for free, depending on the timing of their booking, according to the new guidelines.