
ON THE PACIFIC OCEAN — The 112 passengers of this Southwest Airlines The red-eye flight from Honolulu to Los Angeles was the latest in the airline’s more than 54-year history to jostle for a seat on board.
Before dawn Tuesday, Southwest ended its quirky (or nerve-wracking, depending on the traveler) policy of open seating in favor of assigned seats to all customers, as the carrier that prided itself on marching to its own beat looks more like its rivals under pressure to increase revenue.
The change means all Southwest passengers will know exactly where they will be seated before boarding, and some of them will pay more than $70 each way to have a spacious new seat up front. Prices vary.
CNBC flew on the last open-seat flight and hopped on one of the first with seat assignments to talk to passengers and crew about what they thought about the change. Their feelings were mixed.
“Honestly, it’s overdue,” said Lisa Tate, 33, a teacher from Honolulu, who was traveling to Atlanta via Las Vegas on Monday. “I like the reassurance that I can sit down with my loved ones. It makes it less stressful.”
Vicki Economou, a 68-year-old Houston-based woman who is about to retire after running a family restaurant, has a different opinion. “Now they are like everyone else and nothing sets them apart,” she said.
Economou said she might consider flying other airlines after years of loyalty to Southwest because she doesn’t want to pay for seats.
“I’m not really happy about it,” she said. “I think there are people who are hungry for money.”
“If you can’t beat them, join them”
Several Southwest flight attendants in Los Angeles said they were relieved by the change. One told CNBC she was so happy she wanted to cry because seeing customers scouring the aisle looking for a seat was stressful for the crew members.
Other airline employees, however, greeted the last empty-seat passengers with applause, serving them coffee and handing out commemorative tags for their bags and other souvenirs.
Southwest has been training its employees for months, including suggesting clear announcements reminding customers, especially at the beginning of seat assignments, how boarding will work.
CNBC heard some of the first eight group boarding calls moments after landing in Los Angeles. Gate agents repeatedly reminded customers that seats were assigned and told them where on their boarding pass they could find this information. Customers lined up next to the posts that, just hours before, designated boarding groups, even though the numbers were no longer there.
Digital boarding screens displaying two lanes are already installed and will replace metal poles at airports to tell travelers when they can board under the new boarding order.
A new Southwest Airlines boarding sign at Los Angeles International Airport debuted on January 27, 2026.
Leslie Josephs/CNBC
Until Tuesday, Southwest was the last U.S. carrier to board customers with an open-seat policy that meant passengers could choose the seat of their choice once they boarded the plane. Travelers would be assigned a group A, B, or C, then a number to line up at the gate, and the higher the group and boarding number, the better their chances of getting a coveted aisle or window seat.
The end of open seating is a casualty for today’s consumers, who Southwest executives say are looking for more certainty about where they will sit as the airline’s network, once limited to Texas, now stretches from Hawaii to Costa Rica.
Eighty percent of Southwest customers prefer an assigned seat, according to market research, CEO Bob Jordan told analysts in July 2024, when the change was announced.
The change in seating policy also comes following pressure from investors eager to see the airline capitalize on fees and catch up with rivals’ profit margins.
From 2018 to 2023, American Airlines, Delta Air Lines, Frontier Airlines, Spirit Airlines and United Airlines brought in $12.4 billion in seat fees, according to a report from the Senate Permanent Subcommittee on Investigations in 2024.
This isn’t the only policy the Southwest is changing. Less than a year ago, the airline ended its “two free bags” policy for all passengers and began charging for checked bags. Baggage fees brought in $5.5 billion for U.S. carriers in the first nine months of 2025 alone, according to the Department of Transportation.
There are exceptions for big spenders across the board, as there are for other airlines. Customers with certain credit cards, elite status, or those who purchase the most expensive tickets can waive some fees and select the best seats.
Some of the first passengers to travel with assigned seats on Southwest Airlines on the new policy’s launch day, January 27, 2026.
Leslie Josephs/CNBC
“What this shows is that Southwest basically said if you can’t beat them, join them, and I actually think that’s going to be a positive move for Southwest,” said Henry Harteveldt, founder of travel consulting firm Atmosphere Research Group. “This is a positive move both for what travelers want and for Southwest’s revenue and profitability. One of the reasons Southwest has struggled to attract more frequent travelers and poach customers from other airlines is its lack of assigned seats.”
With the boarding race over, investors in the South West think they have won. The stock is up more than 26% over the past 12 months, more than any other airline, through Tuesday’s close.
Southwest reports fourth-quarter results and 2026 guidance Wednesday afternoon; Wall Street expects Southwest to triple its profit this year to $3.19 per share, according to estimates compiled by LSEG.
Its new initiatives will likely add $4.3 billion in earnings before interest and taxes this year, according to Southwest’s forecast last October, including $1 billion from seat assignments and new seats with more legroom in the front of the plane.
Southwest’s CEO was also optimistic.
“Because assigned seats, extra legroom, comes into play, and that has a lot of value, [results are] it’s going to be better every year,” Jordan told CNBC in a Dec. 10 interview.
All on board
The airline’s original plastic boarding passes have long been replaced by digital boarding passes, but for years customers have set alarms to check in as early as possible – 24 hours before a flight – to ensure they get the best possible place in line.
Comedian Adam Mamawala’s South West recording alarm went off during filming in September 2022.
“I’ll tell you why,” he told the audience. “Tomorrow, at 8:10 sharp, I’m flying home on Southwest,” he said. “You think I’m going to end up in Group C because I’m putting on a show? Are you kidding me? I’m recording myself right now.” He informed the audience that he had obtained the A51, and the crowd applauded him. (He said he missed a taping in the Southwest at a show the year before and didn’t want that to happen again.)
The seat assignments are the latest in major policy changes that Southwest, which carries more customers in the United States than any other airline, has announced over the past two years.
The last Southwest Airlines passengers traveling without seat assignments line up at Daniel K. Inouye International Airport in Honolulu on January 26, 2026.
Leslie Josephs/CNBC
Southwest reached a deal in 2024 with activist investor Elliott Investment Management, which had called for management changes and noted in a presentation that the carrier had long avoided what are now airline industry norms: restrictive basic economy tickets, baggage fees, premium products and seat assignments. Elliott declined to comment.
But the airline could face growing pains as customers adapt to the changes.
Mamawala said he has become a “loyal Delta guy” because he uses the carrier more frequently now and has a American Express card that gives him access to the LaGuardia Airport lounge.
But it still occasionally flies southwest.
“Frankly, I’m surprised that so many Southwest faithful are heartbroken,” he said. “We are moving from chaos to order.”
— CNBC Erin Black contributed to this article.
