Connect with us

Business

End of an era: Southwest Airlines will end open seating, introduce red-eye flights

Published

on

End of an era: Southwest Airlines will end open seating, introduce red-eye flights

For the first time since it was founded more than half a century ago, Southwest Airlines will assign seats — a shift that will allow the low-fare, no-frills company to meet evolving customer preferences and charge more money for premium seats.

The Dallas-based airline also will start to offer overnight, red-eye flights, starting on Valentine’s Day 2025, in five markets, including Los Angeles, Baltimore and Nashville.

Southwest had for years touted its model of open seating as the “ultimate expression of its founding ethos: to make air travel affordable and accessible for everyone.”

“You can sit anywhere you want — just like at church,” flight attendants told passengers.

But Southwest said it had listened to customers who sought more options, often desiring more comfortable, premium seats when they took longer flights. When customers decided to switch to a competitor from Southwest, the airline said, their No. 1 complaint was dissatisfaction with open seating.

Advertisement

“The research is clear and indicates that 80% of Southwest customers, and 86% of potential customers, prefer an assigned seat,” the airline said in a statement. “By moving to an assigned seating model, Southwest expects to broaden its appeal and attract more flying from its current and future customers.”

Currently, Southwest passengers are grouped into boarding positions based on the order of check-in, with some exceptions. This means those who check in for their flight early are rewarded by being able to get on the plane — and snag a preferred seat — before other passengers.

It’s a practice that many budget-conscious, but still comfort-inclined Southwest fliers appreciated.

In 2006, the airline abandoned a plan to assign seats after a trial run and customer surveys revealed that travelers preferred open seating. Keeping open seating was also more efficient. Assigned seating increased boarding time by one to four minutes, the airline said at the time.

The change will enable the company to make more for premium seats. Southwest said it was working on an updated cabin design, with roughly one-third of seats offering extended legroom.

Advertisement

“Although our unique open seating model has been a part of Southwest Airlines since our inception, our thoughtful and extensive research makes it clear this is the right choice — at the right time — for our Customers, our People, and our Shareholders,” Bob Jordan, Southwest’s president, chief executive and vice chairman of the board, said in a statement.

Southwest did not specify when the seat changes will go into effect. Some Southwest fans took to social media to decry the move to assigned seats, saying that it was enough to make them abandon the budget-friendly brand. Others said they always hated having to hunt for an open seat.

But at Los Angeles International Airport on Thursday, many passengers seemed unfazed by the policy change.

Jim Kingsley navigated a luggage cart stacked high with bags for him and his family, having just arrived in Los Angeles after a long flight from Minneapolis.

It’s Southwest’s inexpensive checked bag policy, not seating, that has earned his business. “Otherwise we’d be carrying all these,” he joked.

Advertisement

Southwest, he said, seems safer and friendlier than other airlines. It doesn’t surprise customers with unexpected fees and offers flights at what Kingsley said is a good value for his family.

“As far as airlines go, Southwest has got it going on,” he said.

The company, long one of the nation’s most profitable airlines, has struggled financially in recent years. Costs — including wages, goods and maintenance — have risen across the airline industry in the years since the COVID-19 pandemic began. The problem for Southwest is that its revenue has been much slower to rise than for its competitors, said Edward Russell, a freelance transport and aviation writer.

“Airlines that offer premium products and large loyalty programs including American, United and Delta have done much better,” he said. “The changes we’re seeing from Southwest are basically an attempt to boost revenue to keep up with the rise in costs.”

Estimates from Wall Street analysts indicate that assigned seating could result in as much as $2 billion per year in additional revenue for the airline. This comes at a time when Southwest has been grappling with pressure from investors to boost revenue, Russell said.

Advertisement

On Thursday, Southwest reported that its profit in the second quarter of 2024 dropped more than 46% from a year earlier to $367 million.

“Our second-quarter performance was impacted by both external and internal factors and fell short of what we believe we are capable of delivering,” Jordan said.

“We are taking urgent and deliberate steps to mitigate near-term revenue challenges and implement longer-term transformational initiatives that are designed to drive meaningful top and bottom-line growth.”

It’s unlikely that the seating switch-up will dramatically raise prices for travelers, but those who want to sit at the front of the plane or enjoy the view at a window seat should expect to pay more as they do on other airlines, Russell said.

Tomi Muñoz and Steven Romero, who flew Southwest from Denver to Los Angeles for a vacation Thursday morning, said they’d like to see the airline maintain low ticket prices. The frequent travelers said they’ve never had an issue with the open seating policy.

Advertisement

“It depends on who you are as a traveler,” said Muñoz, 22, adding that anxious fliers might get some relief by knowing exactly where they’re going to be sitting on the plane.

But Muñoz and Romero don’t worry about that.

“We end up sitting with each other anyway,” Romero, 23, said.

Destinee Gary, 25, said Southwest’s current seating arrangement enables her to avoid loud groups or potentially disruptive children during the flight. Gary, who has flown only once before, prefers to scope out the situation on a plane before committing to a spot.

But she said an increase in ticket prices would be the real deal-breaker.

Advertisement

“If it costs more,” she asked, “then why not fly American?”

Business

In a first for the country, voters in Monterey Park ban data centers

Published

on

In a first for the country, voters in Monterey Park ban data centers

Residents of Monterey Park voted overwhelmingly to ban data centers on election day, making the San Gabriel Valley city the first in the nation to do so by public vote.

As of Wednesday, 86% of votes were in favor of Measure NDC, the city ban, according to the Los Angeles County registrar-recorder/county clerk.

Other cities and towns have passed moratoriums on data centers, as a wave of opposition sweeps the country. But the Monterey Park vote can only be overturned by another ballot measure, making it the most permanent data center ban in a jurisdiction.

Monterey Park’s City Council had already banned data centers by ordinance, after a proposed 247,000-square-foot data center met an outpouring of public anger and concern. The developer withdrew that plan.

Advertisement

That facility would have been less than 500 feet away from the nearest home, and would have used three times the electricity of the entire 60,000-person city. Residents said it would have caused noise and air pollution and driven up electricity rates.

“This ensures long-lasting protections for current and future generations,” Amy Wong, co-founder of the group San Gabriel Valley Progressive Action, said of the vote. “It means that future city councils cannot overturn a data center ban, even if data center developers wanted to spend money to fund pro-data center candidates.”

The measure had no formal opposition. The developer of the proposed facility, investment firm HMC StratCap, said it wouldn’t engage in the ballot fight when it withdrew in March.

The Data Center Coalition, an industry trade group, expressed disappointment in the vote.

“It sends a signal that the area is closed for business, both for data centers and for other significant economic development projects,” state policy director Khara Boender said.

Advertisement

“It deprives local residents of the opportunity to compete for jobs and investment, while also causing the area to relinquish substantial long-term economic investment, high-wage jobs, and critical tax revenue to neighboring areas or other states.”

SGV Progressive Action worked with hyperlocal groups including No Data Center Monterey Park to rally support for the measure.

The group is now focused on stopping data center proposals in the City of Industry and fighting a move by City of Industry, Santa Fe Springs, Vernon and City of Commerce to welcome data centers and other industry with fast-tracked permitting and tax incentives.

City of Industry, in the San Gabriel Valley, and Vernon, south of downtown L.A., are primarily industrial areas, each with around 300 permanent residents. They are employment centers, and tens of thousands of workers commute in daily.

There has been little vocal opposition to data centers among the few residents of these cities. Wong said the protest is primarily coming from the surrounding neighborhoods.

Advertisement

“If a data center gets built in City of Industry, residents across the region would bear the brunt of pollution and increased utility costs,” Wong said, noting that it is surrounded by 16 other cities and unincorporated communities.

Data center proposals have been limited in California compared to Virginia, Texas, Georgia, Illinois and Arizona, which sit at the center of a recent boom in hyperscaler facilities to power artificial intelligence.

California has the third-most data centers in the country, with 300, but high electricity rates, expensive land and regulatory hurdles mean that fewer, and smaller, facilities are currently planned than in other hotspots.

That doesn’t mean opposition hasn’t been fierce. In Coachella and Imperial County, residents are showing up in droves to protest local proposals.

In the San Gabriel Valley, Montebello, El Monte and Baldwin Park have all enacted temporary moratoriums, and Alhambra recently banned data centers as part of a zoning code update.

Advertisement

Wong said she hoped the ballot measure vote would galvanize the opposition. “The vote is a testament to the people power of our region,” she said. “Our region is worth protecting, and we won’t let data centers determine our future.”

Continue Reading

Business

Rent-hike ban to protect fire victims ends despite gouging concerns

Published

on

Rent-hike ban to protect fire victims ends despite gouging concerns

A rule intended to prevent rent gouging in the wake of the Eaton and Palisades fires has lapsed in Los Angeles County, possibly exposing some renters to hikes.

The executive order that blocked rent increases was issued by Gov. Gavin Newsom amid the devastating wildfires last year. Under the order, landlords couldn’t increase rents by more than 10% above their prefire levels.

The rule, which was supposed to be temporary and was repeatedly extended, ended Friday after a vote to extend it again failed to garner enough votes. Supervisor Lindsey Horvath, whose district includes Pacific Palisades, sounded the alarm in a motion to extend price protections that failed to pass at the Board of Supervisors’ May 19 meeting.

“These price gouging protections continue to be necessary as construction and rebuilding continue, and as thousands of people remain displaced,” the motion said. “Families which signed short-term leases could face drastic price increases of 50% or more without further price gouging protection.”

Advertisement

Los Angeles County is home to more than 1 million rental properties, though not all of them needed protection from the new rule. There are already stricter rent increase caps for many residences, depending on the location, type and age of the building. Despite the rent control in the region, the people of Los Angeles pay among the highest rents in the country.

It is uncertain whether renters will face rapidly rising rents now that the protection has lapsed. But some real estate experts and policymakers said there was no need for the temporary rule that was part of the governor’s state of emergency.

Supervisors Kathryn Barger, Janice Hahn and Holly Mitchell abstained from voting on the motion to extend the protection, while Supervisors Hilda Solis and Horvath supported it.

“I abstained because I did not see sufficient evidence to justify extending this emergency ordinance, nor did I see evidence to eliminate it entirely,” Hahn said.

Barger’s office said she supported allowing the protections to sunset while waiting to see whether new information emerged.

Advertisement

“Market data already shows countywide rents are only about 2% above pre-emergency levels and rental inventory has grown,” Barger representative Helen E. Chavez Garcia said. “The Supervisor is also mindful of the burden these ongoing protections place on small property owners throughout the county.”

Mitchell did not immediately respond to a request for comment.

There haven’t been steep rent hikes in neighborhoods within three miles of the Palisades fire, according to a Times analysis of data from Zillow, the property listing company.

In ZIP Codes within three miles of the Palisades fire, rent increased 4.8% from December 2024 to April 2025. In areas around the Eaton fire, which destroyed swaths of Altadena, rent jumped 5.2% in the same period.

In L.A. County, ZIP Codes farther from the fires saw only about a 2% increase.

Advertisement

A landlords representative, Jesus Rojas of the Apartment Owners Assn. of Greater Los Angeles, told the supervisors during public comment at the meeting that the county’s rent-gouging rules have “long outlived the emergency they were intended to address” and are now being “wrongfully used to harm thousands of rental housing providers throughout the county.”

“There is no proof that multifamily rental housing providers are hugely increasing rents for impacted homeowners,” Rojas said.

Indeed, there are strong signs that the property market in the Los Angeles area has at last begun to cool.

L.A. metro-area rent prices recently fell to a four-year low, with the median rent slipping to $2,167 in December.

Meanwhile, condominium sales had their slowest start of the year in decades. Condo sales in Los Angeles have plummeted to a 20-year low, with fewer than 2,000 units sold in January and February — the worst start to the year since 2005.

Advertisement

Newsom defended the price-gouging protections shortly after they went into effect.

“In the days following the Los Angeles firestorms, we worked quickly to protect Los Angeles survivors from any form of exploitation,” he said in February 2025. “The state has the tools in place to not only block price gouging during this emergency, but also to prosecute bad actors.”

The Los Angeles County Department of Consumer and Business Affairs said it received more than 2,000 complaints after the fires, alleging that retailers and landlords were taking advantage of people put in hardship by their losses, and sent out more than 2,000 cease-and-desist letters to businesses and landlords for alleged price gouging, said Morine Merritt, who oversees department investigations into consumer and real estate fraud.

“Close to 90% of the complaints that we received involved allegations of rent increases,” Merritt said in an interview. Now that the fire-related protections have expired, existing laws and “regular market conditions determine price increases for goods and services, including rents,” she said.

Crackdowns on fire-related rent gouging have been rare, said Chelsea Kirk of the activist organization the Rent Brigade, which analyzed L.A. County’s rental market in the year after the fires. It reported 18,360 potential examples of price gouging in listings but said that few lawsuits had been filed by authorities so far.

Advertisement

Last week, Rent Brigade announced what it said was the first private civil lawsuit brought by a family that claimed to be rent-gouged in the aftermath of the wildfires. Plaintiffs Randall and Candy Renick, whose Altadena home was damaged, said they were charged nearly three times the maximum permitted rate for nearly 10 months. They seek restitution of $96,000 plus civil penalties and attorneys’ fees.

The rental market has probably stabilized since the fires, Kirk said, but other families may still be “locked into illegal rents” that they agreed to pay when they were in a rush to find housing after they were displaced.

Continue Reading

Business

Read Nick Bilton’s Letter to Scott Pelley

Published

on

Read Nick Bilton’s Letter to Scott Pelley

Dear Mr. Pelley:

I meant what I said in my letter last week to the 60 Minutes team: joining 60 Minutes is the honor of my career and I am grateful to be working alongside the people who have contributed to the most important television journalism brand this country has ever produced. While I’m new to 60 Minutes, I’ve devoted my career to investigative journalism and storytelling. I started this job excited to collaborate and to benefit from the wisdom and experience of the 60 Minutes veterans, with you among them. For that reason, one of the first things I did in my new role was call you to talk and invite you to dinner. It is a profound disappointment that you rejected that overture and chose ambush instead. Yesterday, you hijacked my first meeting with staff to disparage me, my qualifications, and my intentions with remarkable incivility and contempt. I welcome a diversity of viewpoints and respectful debate among the team, but this was nothing of the sort. Yesterday’s performative display of hostility enacted in front of the staff instead of in a civil, private conversation-demonstrated that you have no interest in contributing to the future success of the show, or approaching my new tenure with a mind open to collaboration and progress. I am here to deliver first-in-class news programming, not to make headlines about newsroom drama. I am eager to work alongside those who share this goal.

Despite yesterday’s misconduct, I had hoped that in sitting down with you today we could find a path forward together. You made clear that you are not interested in such a path.

Your antipathy to the future of the show has come through loud and clear. And I have heard you. I therefore write on behalf of CBS News, Inc. (“CBS”) to inform you that your employment with CBS is terminated for cause effective immediately. Enclosed is your formal termination letter.

Sincerely,

Nick Bilton

Executive Producer, 60 Minutes

Continue Reading
Advertisement

Trending