Southwest Airlines will soon assign seats on flights and offer some with extra legroom, making sweeping changes to attract more passengers and boost revenue.

Major Shift in Seating Policy

The plans, announced Thursday, also come as Southwest fends off an activist investor pushing for an overhaul of the airline’s leadership and operating strategy. Open seating has been a hallmark of Southwest flights since the airline’s inception over 50 years ago. This model produced decades of uninterrupted profits and democratized flying. However, Southwest executives now believe the company must adapt to meet today’s customer demands, marking one of its most significant shifts.

CEO’s Perspective

“This is the right change at the right time,” Southwest Chief Executive Bob Jordan said in an interview.

Timeline and Implementation

While it isn’t clear when flying with assigned seats and premium rows will start, Southwest expects bookings to begin next year. The exact timing depends on gaining regulatory approval and retrofitting planes. The company plans to share more details at an investor presentation in late September. Additionally, Southwest will introduce red-eye flights starting next year.

Challenges and Competitive Pressure

Southwest has been facing challenges on multiple fronts. Its profit margins lag behind many rivals, and it is pulling back from some new cities included in an ambitious expansion strategy. While other airlines also struggle with too many empty seats on U.S. flights and weaker fares, Southwest lacks the international network and high-end offerings that help offset these problems for its competitors.

New Boarding Plan

Southwest’s new plan will ease the pressure on flyers to check in exactly 24 hours in advance or pay extra to secure a good spot in queues at airport gates. Fans of the airline have enjoyed open seating, especially when flights were emptier, allowing them to often land a window or aisle seat. However, this is happening less frequently as planes become more packed.