
Across the Pacific Ocean — 112 passengers on board southwest airlines The Red Eye flight from Honolulu to Los Angeles was the last time in the airline’s 54-year history that there was competition for seats on the plane.
Before dawn on Tuesday, Southwest Airlines scrapped its unorthodox (and, for some travelers, anxiety-inducing) unreserved seating policy in favor of assigning seats to all customers, as an airline that prided itself on marching to the beat of its own drum came under pressure to increase revenue and become more similar to its competitors.
With this change, every Southwest passenger will know exactly where they will sit before boarding, and some will pay more than $70 per leg to get a new, spacious spot in the front. Prices vary.
CNBC took the last non-reserved seat flight and hopped on the first one with seat reservations, and spoke to passengers and crew members about how they felt about the change. Their feelings were mixed.
“Honestly, it’s too early,” said Lisa Tate, 33, a teacher from Honolulu who was traveling to Atlanta via Las Vegas on Monday. “I like the security of being able to sit with my loved ones. It makes the situation less stressful.”
Vicki Economou, a 68-year-old Houston-based woman who is retiring from running her family’s restaurant, doesn’t feel that way. “Now they’re just like everyone else, no different,” she said.
Economou said she has been loyal to Southwest Airlines for years, but may consider flying with another airline because she doesn’t want to pay for a seat.
“I’m not very happy,” she said. I think some people are having trouble with money.
“If you can’t beat them, join them.”
Several Southwest Airlines flight attendants in Los Angeles said they were relieved by the change. One person told CNBC that he was so happy that he wanted to cry because it was stressful for the flight attendants to have passengers walking up and down the aisles looking for seats.
But other airline employees greeted the last unreserved passengers with applause, served them coffee and handed out commemorative bag tags and other memorabilia.
Southwest Airlines has been training its employees for months, including offering clear announcements to remind customers of how boarding works, especially during the early stages of seat selection.
CNBC heard some of the boarding calls for the first eight groups shortly after they arrived in Los Angeles. Gate agents repeatedly reminded customers that they had an assigned seat and told them where to find that information on their boarding passes. A few hours earlier, customers were lining up next to the mailboxes that designated their riding groups, but those numbers are no longer there.
Digital boarding screens displaying two lanes are already in place, replacing metal poles at the airport and instructing travelers when to board according to the new boarding order.
New Southwest Airlines boarding signs at Los Angeles International Airport debuted on January 27, 2026.
Leslie Josephs/CNBC
Until Tuesday, Southwest Airlines was the last airline to allow customers to board with an open-seat policy that allows passengers to choose the seat of their choice once they board the plane. Passengers are assigned groups A, B, and C, and then assigned a number to line up at the gate, and the higher the boarding group and number, the better the odds of getting the coveted aisle or window seat.
The elimination of unreserved seats is costing today’s consumers, Southwest Airlines executives said, who want more certainty about where they sit as the airline’s network, once exclusive to Texas, now stretches from Hawaii to Costa Rica.
According to market research, 80% of customers in the Southwest prefer reserved seating, CEO Bob Jordan told analysts in July 2024, when the changes were announced.
The seat policy change also comes in response to pressure from investors who want airlines to leverage fees to catch up with competitors’ profit margins.
American Airlines, Delta Air Lines, Frontier Airlines, Spirit Airlines and United Airlines brought in $12.4 billion in seat fees from 2018 to 2023, according to a 2024 Senate Permanent Subcommittee on Investigations report.
That’s not the only policy change Southwest is making. Less than a year later, the airline ended its “two bags free flight” policy for all passengers and started charging for checked bags. According to the Department of Transportation, baggage fees generated $5.5 billion in revenue for U.S. airlines in the first nine months of 2025 alone.
As with any airline, there are exceptions when it comes to spending a lot of money on all fronts. Customers with certain credit cards, elite status, or those purchasing the most expensive tickets can save on fees and choose the best seats.
Some of the first passengers to fly with assigned seats on Southwest Airlines on January 27, 2026, the new policy’s debut date.
Leslie Josephs/CNBC
“What this shows is that Southwest is basically saying if you can’t beat them, join them, and I actually think this will be a positive move for Southwest Airlines,” said Henry Harteveldt, founder of travel consulting firm Atmosphere Research Group. “This is a positive move for both traveler demand and Southwest’s profitability. One of the reasons Southwest has struggled to attract more frequent travelers and poach customers from other airlines is a lack of reserved seats.”
The boarding race is over, and Southwestern investors think they’ve won. The airline’s stock price has risen more than 26% over the past 12 months, more than any other airline through Tuesday’s close.
Southwest Airlines will release fourth-quarter results and 2026 forecasts Wednesday afternoon. Wall Street expects Southwest Airlines’ earnings to triple this year to $3.19 a share, according to estimates compiled by LSEG.
Southwest Airlines said in October that its new initiatives would likely add $4.3 billion to its pre-interest and tax profits this year, with $1 billion of that coming from seat assignments and new seats with more legroom in the front of the plane.
Southwest’s CEO is also optimistic.
“Because assigned seats, more legroom, are beneficial and have a lot of value. [results are] It’s going to get better every year,” Jordan told CNBC in a Dec. 10 interview.
Everyone on board
The company’s original plastic boarding cards have long been replaced by digital boarding passes, but for years customers have been setting alarms to check in at the earliest possible time, 24 hours before their flight, to ensure they get the best possible spot in the queue.
In September 2022, comedian Adam Mamawala’s South West check-in alarm went off during his set.
“I’ll tell you why,” he told the audience. “I’m flying home tomorrow on Southwest Airlines at exactly 8:10,” he said. “You think I’m going to be put in Group C because I’m doing a show? Are you kidding me? I’m checking in right now.” He told the audience he had won A51, and the audience cheered. (He said he missed the Southwest Check-in during the previous year’s show and didn’t want it to happen again.)
The seat reservations are the latest in major policy shifts announced by Southwest Airlines, which carries more customers in the United States than any other airline, over the past two years.
The last Southwest Airlines passenger to board a plane without a seat reservation lines up at Daniel K. Inouye International Airport in Honolulu on January 26, 2026.
Leslie Josephs/CNBC
Southwest Airlines reached a settlement with activist investor Elliott Investment Management in 2024, but Elliott Investment Management called for a leadership change and noted in one presentation that the airline had long avoided what are now airline industry standards, such as restrictive basic economy tickets, baggage fees, premium products and seat reservations. Elliott declined to comment.
But there could be growing pains for airlines as customers adapt to change.
Mamawala said she now flies more frequently on airlines. american express This card gives you access to lounges at LaGuardia Airport.
But he still occasionally flies southwest.
“Frankly, I’m surprised that so many believers in the South West seem to be grieving,” he said. “We are moving from chaos to order.”
— CNBC’s Erin Black contributed to this article.
