Southwest Airlines Ditches Open Seating After Half a Century (4)

Southwest Airlines Co. will begin offering assigned seats, ditching the free-for-all policy that has been a defining feature of the carrier for more than half a century.

The airline announced the seismic change to its business model Thursday alongside a new premium-class option and plans for redeye flights — shifts the company sees boosting sales and enhancing its appeal. While Southwest said earlier this year that it was reconsidering the seating policy, it’s now facing heightened pressure to revamp underperforming operations from activist investor Elliott Investment Management.

A Southwest Airlines cabin during boarding in Oakland.

Source: Smith Collection/Gado/Getty Images

The strains on Southwest’s business were underscored in the company’s earnings ...