A Southwest Airlines Boeing 737-700 aircraft lands at Ronald Reagan Washington National Airport in Arlington, Virginia, on May 7, 2023.
Nicolas Economou | Nurfoto | Getty Images
Southwest Airlines is considering changes to its cabin that could mean abandoning the single-class open seating system to boost sales, CEO Bob Jordan told CNBC on Thursday.
The changes would represent a huge change for the airline that has stood out from the competition for decades with its simpler business model.
“We're exploring new initiatives, things like the way we sit and board our planes,” Jordan said in an interview after the airline's disappointing first-quarter report.
Southwest's all-Boeing The 737 fleet has one economy class cabin and no seat assignments, but does offer customers the option of early boarding for a fee so they can get their preferred seats. The airline has been striving for years to keep its product simple and easy to use, with the aim of keeping its own costs and complexity to a minimum.
Meanwhile, rivals included Delta And United have touted high revenue growth for premium seats such as business class and strong upsell rates.
Jordan said no decisions have been made about what kind of changes Southwest will ultimately implement, but he said studies have shown “interesting” results.
“Customer preferences change over time,” says Jordan.
-CNBCs Phil LeBeau contributed to this report.