DALLAS, TX – Southwest Airlines has announced a series of significant updates to its customer experience policies, including an evaluation of its long-standing open seating model and permanent changes to its flight credit rules.

• Seating Policy Under Review – The airline is actively studying alternatives to its unique open seating process, a hallmark of its brand for over 50 years, with potential changes to be implemented in the future.
• Flexible Funds – Flight credits issued by the airline no longer have an expiration date, and customers can now transfer eligible credits to another Rapid Rewards member once per year.
• New Passenger Perks – All passengers, regardless of ticket type, can now fly same-day standby for free. Previously, this benefit was reserved for premium ticket holders and elite status members.

These changes represent a notable strategic shift for the Dallas-based carrier, impacting everything from the boarding process to how passengers manage unused tickets. The moves come as the airline seeks to modernize its offerings and attract a wider range of travelers.

What’s Happening to Southwest’s Open Seating?

For the first time in its history, Southwest Airlines is seriously considering a move away from its famous open seating policy. CEO Bob Jordan confirmed that the airline’s leadership is analyzing potential changes to the boarding and seating process. The current system, where passengers choose their own seats on a first-come, first-boarded basis, has been a core part of the airline’s identity since its inception.

While no specific replacement model has been announced, the review could lead to the implementation of assigned seating. The primary question for the airline is how such a change would impact its operational efficiency, particularly its quick turnaround times at the gate, which are crucial to its business model. The study is ongoing, and no firm timeline for a decision has been released.

How Are Flight Credits and Vouchers Changing?

In a more immediate and concrete update, Southwest has introduced several customer-friendly changes to its flight credit policies. Effective now, flight credits issued by the airline will no longer expire. This gives passengers indefinite flexibility to use their funds for future travel.

Furthermore, Southwest now allows customers to make a one-time transfer of flight credits to another person. The recipient must be a member of the airline’s Rapid Rewards loyalty program. The airline has also expanded its same-day standby benefit, making it free for all customers. Previously, only A-List members or those who purchased premium “Business Select” fares could use same-day standby without a fee.

Why Is Southwest Making These Changes Now?

The series of policy shifts comes at a pivotal moment for Southwest. The airline has faced pressure to boost its financial performance and modernize its product to better compete for high-value business travelers, many of whom prefer the certainty of an assigned seat.

Recently, activist investor Elliott Investment Management acquired a significant stake in the airline, publicly calling for leadership changes and a comprehensive business review to improve shareholder returns. While the policy changes were announced prior to Elliott’s most recent push, they align with a broader strategy to update the customer experience and enhance the airline’s appeal in a competitive market. The adjustments to flight credits and standby travel are seen as direct attempts to add value and flexibility for all passengers.