FLYERS have started snubbing Southwest after the airline imposed new fees and made plans to remove its seating policy, the brand’s quarter earnings show.
Revenue for the airline plummeted after travelers blasted the new measures as “the worst.”
Southwest Airlines reported less-than-savory earnings this last quarter[/caption]
The report came after fans fumed over the carrier’s new seating policy[/caption]
On Wednesday, Southwest reported less-than-savory earnings this last quarter as it underperformed Wall Street’s expectations.
The company brought in $7.24 billion in revenue after the market predicted it would earn $7.3 billion.
Southwest also only earned 43 cents per share when Wall Street expected 51 cents per share.
The carrier additionally offered investors a $2 billion share buyback in the quarterly report, according to CNBC.
All of this came after the airline slashed multiple policies this year.
One of the most crucial changes is that flyers can no longer pick their own seats free of charge – a policy that was once essential to the brand’s identity.
Seats used to be assigned on a first-come, first-served basis, but starting January 27, flyers will have to pay more if they want more desirable spots.
Earlier this year, the brand also dropped its “Bags Fly Free” policy, which left longtime customers outraged.
Now, flyers must shell out $35 for their first checked bag, and $45 for their second.
Southwest customers haven’t been shy with their feelings on the changes.
In a searing segment, radio hosts Tracy and Fizz, who have a show on the Denver, Colorado, station KYGO, discussed why the new policy is a huge hindrance to travel.
“Why have we made flying the worst,” complained Fizz as he tore into airline changes.
Tracy described the move as “so annoying” as families who want to sit together will have to pay extra to reserve their seats.
She explained, “If you’re paying $20 extra per seat for a family of five, that’s a hundred bucks.”
Despite fury from customers, the airline continues to insist that the changes are a good thing.
New seating structure for Southwest Airlines
Southwest Airlines said the following on the new seating types offered:
- “Standard Seat: Standard legroom seats, located in the back of the cabin.”
- “Preferred seat: Standard legroom seats, near the front of the cabin.”
- “Extra Legroom seat: A roomier experience with more legroom to stretch out, at the front of the cabin as well as the exit rows, with up to five additional inches* of extra legroom compared to Standard seats. Plus, earlier access to bin space, extra snacks, and complimentary premium beverages. *Five extra inches of seat pitch is available on the 737-700 aircraft. Seat pitch will vary by aircraft type”
Source: Southwest Airlines
CEO SPEAKS
In an interview with the New York Times, Southwest CEO Bob Jordan said the new seating policy was “really about choice” for flyers.
“Customers today want a lot of choice, especially coming out of the pandemic. The customer’s needs and wants are just different,” he said.
“We have a wider variety of products, including this new basic fare that comes with a lot of restrictions.
“For just a few more dollars, you can buy up to the next fare, and it has fewer restrictions.”
Jordan admitted that “change is hard” but felt confident that the brand was moving in the right direction.
“I know we have some that are not happy — and we have many, many, many that are happy,” he said.
