Southwest Airlines said flights departing 27 January 2026 will feature mandatory assigned seats, ending the low-cost carrier’s 54-year practice of open seating. The company will pair the change with a revised boarding order as it looks to simplify operations and raise ancillary revenue. The policy shift was unveiled just days before the airline reported weaker-than-expected second-quarter results. Adjusted earnings fell to $0.43 a share on revenue of $7.24 billion, missing Wall Street estimates of $0.51 and $7.30 billion, respectively. Net income slid 42% to $213 million, while unit revenue declined 3% from a year earlier amid subdued U.S. leisure demand. Chief Executive Officer Bob Jordan said demand has stabilised and industry capacity cuts should help pricing in the second half. Southwest authorised a $2 billion share-repurchase programme and forecast third-quarter unit revenue will range between a 2% decline and a 2% increase. The carrier now targets 2025 earnings before interest and taxes of $600 million to $800 million, sharply below its previous $1.7 billion goal, and expects non-fuel operating costs to rise as much as 5.5% in the current quarter.