Southwest and Spirit Airlines shake up business models amid financial performance concerns

On 25-Jul-2024, Southwest Airlines announced plans to introduce assigned and premium seating, ending its open seating policy that has been in place since the carrier's inception in 1971.

Days later, Spirit Airlines reported it will launch premium seating and new fare types from Aug-2024, a significant shift from the carrier's 'no-frills' business model.

As economic pressures mount and passengers pivot toward premium travel experiences, the days of low fare models in the US could be numbered.