Southwest began operating assigned and extra-legroom seating on January 27, 2026, replacing its open-seating model. The change gives passengers seat assignments and choices that may cost more, but available company filings do not show that assigned seating alone is expected to generate more than $1 billion—or disclose how much it has earned by itself. Southwest framed the shift as a response to customer preferences, a way to attract additional travelers, and an opportunity to increase revenue per passenger.
What changed, and when did it take effect?
Southwest announced its plan to end open seating on September 26, 2024. It later specified that assigned and premium seats would go on sale July 29, 2025, for travel beginning January 27, 2026. In its January 28, 2026 earnings release, the airline said the new seating was operational as of the previous day.
The assigned-seat model does not mean every seat is the same product. Southwest’s 2024 plan described extra-legroom seats with up to five additional inches of pitch and said they would make up approximately one-third of seats. Those were planned figures, not a guarantee that every aircraft or seat has identical dimensions; passengers should check the details for their flight and fare.
Why did Southwest make the switch?
Southwest said it wanted to respond to customer preferences, appeal to customer segments it did not compete for as strongly, and generate more revenue per passenger. In its September 2024 announcement, the company said its research found that 80% of Southwest customers and 86% of passengers who choose other airlines wanted assigned seats. These are company-published research figures; the reviewed announcement does not independently establish the survey methodology.
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In January 2026, CEO Bob Jordan said the airline expected earnings upside depending on how booking behavior developed. He identified possible growth from close-in booking upsells and from business and leisure customer segments. Those were potential drivers, not reported seat-only earnings.
Does Southwest expect assigned seats to make more than $1 billion?
The available Southwest sources do not substantiate a forecast of more than $1 billion from assigned seating alone. The figure is easy to confuse with wider company targets, but the distinction matters for assessing both the business plan and passenger claims about seat charges.
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| Figure | What Southwest said it covers | What it does not establish |
|---|---|---|
| Approximately $1.8 billion for full-year 2025 and $4.3 billion for full-year 2026 | Southwest’s second-quarter 2025 earnings release maintained these initiative EBIT contribution targets for a slate of initiatives. | They are not assigned-seating revenue or a seating-only forecast. |
| $875 million for the three months ended June 30, 2026; $1.591 billion for the six months ended June 30, 2026 | Southwest’s July 23, 2026 Form 10-Q reported passenger ancillary revenue sold separately. The company said the increase over the comparable 2025 periods reflected bag fees, assigned and extra-legroom seating, and co-brand impacts. | The filing does not isolate seat revenue, so these totals cannot be attributed to seat rules alone or treated as a forecast of future seating revenue. |
The targets are initiative EBIT contributions, while the later figures are reported ancillary revenue. They measure different things and cover different periods. Neither supports saying that assigned seats alone will bring in more than $1 billion.
What else changed for Southwest passengers?
Passengers who need more space
The Associated Press reported that passengers who need extra room must purchase an additional seat in advance under the revised policy. Refunds may be possible, but are no longer guaranteed; eligibility depends on availability and fare class. Travelers who need an extra seat should check Southwest’s current terms before booking.
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Checked baggage
Southwest also ended its decades-old free checked-bag policy for most travelers in May 2025. That is a separate change from assigned seating, even though bag fees later formed part of the company’s combined ancillary-revenue reporting. Southwest’s 2024 announcement had said its research supported retaining two free checked bags because the company believed changing the policy would reduce demand by more than fee revenue; it subsequently introduced fees for most fare products.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What the “price-gouging” claim can—and cannot—establish
The title’s “price-gouging” wording should not be read as a verified quotation from a particular passenger. The reviewed coverage, including the AP report, does not establish who used that phrase or document it as a traceable passenger quote. Nor does the financial information establish that seat charges alone produced a particular revenue total. What is established is that Southwest introduced assigned and extra-legroom seating, described revenue growth as one rationale, and reports some seat-related revenue within broader totals that also include other sources.
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For an individual traveler, the practical cost depends on the flight, fare and seat choice. Compare the total trip price—including any seat-selection charge, extra-legroom option, additional-seat requirement, and checked-bag fees—with alternatives before booking. The sources covered here do not provide a complete, current comparison of Southwest’s seat prices with other airlines.
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