Stocks It’s the end of budget airlines as we know them
Southwest Airlines is ending its famous open seating policy. Assigned seating could generate up to $2 billion in revenue for Southwest, one analyst estimated. The change represents a larger evolution of budget airline business models in the US. Budget airlines are upending many their original business plans as increased costs wreak havoc on their bottom lines. On Thursday, Southwest Airlines announced the end of its open seating policy , a 50-year practice of letting passengers choose their seats based on their boarding order instead of having one pre-assigned. Instead, the airline will follow most other airlines in the world in assigning seats and offering premium options on all of its flights, saying internal research found this to be preferred by a vast majority of customers. More details will be revealed in September. The move was an expected but nonetheless shocking reversal by the US''s arguably last remaining low-cost airline that had thus far resisted the changes implemented by many competitors.
https://www.businessinsider.nl/its-the-end-of-budget-airlines-as-we-know-them/
