Southwest Airlines became the US's largest domestic carrier by offering free bags and open seats — now it's upending one of its most well-known perks

Southwest Airlines

Southwest Airlines is the US's largest domestic carrier, serving over 100 destinations across the country.Stephen M. Keller/Southwest AirlinesThe carrier has been in operation since 1971 and just celebrated its 53rd anniversary in June 2024.Source: SouthwestOne of the hallmarks of the Southwest experience is that the airline does not assign seats, instead, each passenger is provided a boarding group number. Once on board the aircraft, they are allowed to sit in any open seat.Southwest Airlines passengers pictured in boarding groups at Oakland International Airport in 2020.Smith Collection/Gado/Getty ImagesIn September, that's all going to change as the airline rolls out new seating policies that may largely match competitors' paid seat assignments and premium options. On Thursday, Southwest announced plans to scrap the unassigned seat policy and also sell premium seating options.Southwest Airlines"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 press announcement.Source: Southwest is ditching its unassigned seat policy for the first timeThe airline is under pressure to generate additional revenue after activist investor Elliott Investment Management revealed a $1.9 billion stake in June. The group is pushing for changes at the airline to increase profitability and share price.DANIEL SLIM/AFP via Getty ImagesSource: An activist investor with a new $1.9 billion stake in Southwest is calling for big changes at the airlineSouthwest started as a small carrier based in Texas and only operated intra-state routes between three cities: San Antonio, Houston, and Dallas.Herb Kelleher (left) and Rollin King (right)Southwest AirlinesThe airline, which was originally called Air Southwest, was dreamt up by Rollin King and Herb Kelleher on a cocktail napkin in 1966.King mapped the network he envisioned, making a triangle between the three key cities. He explained to Kelleher that operating solely in Texas would make the company exempt from the Civil Aeronautics Board's federal regulations, which controlled fares, routes, and schedules.Rollin King's "Texas Triangle"Southwest AirlinesSource: SouthwestFrom 1938 to 1978, the airline industry was federally regulated under the CAB as means to ensure major carriers like United and Pan Am were profitable. Fares were sky-high and only business travelers and deep-pocket leisure customers could afford the luxury of flight. The downside was that a lot of the time, planes flew half-empty.Convair 880 club cabinBettmann/Getty ImagesSource: Smithsonian National Air and Space MuseumBecause Air Southwest was certified under the state's aviation regulator, the Texas Aeronautics Commission, it was not bound to federal rules — a clever loophole King unapologetically copied from California carrier Pacific Southwest Airlines.Rollin KingSouthwest AirlinesSource: SouthwestThe loophole allowed Air Southwest to fly freely in Texas and undercut competitors' fares, offering more customers the option to fly instead of drive in the large state. The business model was game-changing and a threat to legacy airlines.Herb Kelleher with model of Southwest aircraftSouthwest AirlinesSource: SouthwestIn 1967, three airlines operating under federal rules, Braniff, Trans-Texas Airways, and Continental Airlines, took legal action against Air Southwest, saying it does not have the right to fly in Texas.Lady Bird Johnson, wife of President Lyndon Johnson, steps off Braniff Airways jetHarvey Georges/Associated PressSource: Companies HistoryThe lawsuit took three years to resolve, and in 1970, the Texas Supreme Court ruled Air Southwest could fly in the state. The three airlines then took the case to the US Supreme Court, which declined to review it.Herb Kelleher (left) Lamar Muse (second from left) and Rollin King (center)Southwest AirlinesSource: Companies HistoryAir Southwest's right to fly in Texas was finalized in December of 1970. The carrier officially changed its name to Southwest Airlines in 1971 and commenced operations on June 18 of the same year.Southwest flight attendant points to scheduleSouthwest AirlinesSource: Companies HistoryThe carrier launched with two routes from Dallas Love Field to Houston and San Antonio using three new Boeing 737-200 aircraft. Flights between Houston and San Antonio commenced in November 1971.Southwest Airlines Boeing 737-2T4 at Los Angeles International Airport in 1991.Torsten Maiwald/Airliners.netPart of Southwest's immense success was due to Kelleher's focus on unconventional marketing and unique corporate culture.Herb Kelleher on Southwest tailSouthwest AirlinesSource: SouthwestKelleher used Pacific Southwest Airways' idea of "Long Legs And Short Nights" for hostesses, as they were called at the time, keeping with the theme of hiring attractive women to work Southwest flights.Southwest Airlines flight attendants in an undated historic picture.Southwest AirlinesSource: Companies HistoryThe airline's first flight attendants were described as long-legged dancers and were handpicked by a committee that included the same individual who picked the hostess on Hugh Hefner's Playboy jet.Southwest Airlines first flight attendant uniformsSouthwest AirlinesSource: Companies HistoryKelleher dressed the flight attendants in a bright orange top, orange hot pants, a white belt around the hips, and white side-laced go-go boots. He also pushed for a laid-back, casual inflight experience and only hired female hostesses who were fun, engaging, and had a sense of humor.First Southwest Airlines hostess classSouthwest AirlinesSource: Texas MonthlySouthwest also provided a winter version of the uniform, which included orange and white striped hot pants, a blazer, a white top, and an ascot.Southwest winter version of hot pants uniformSouthwest AirlinesSource: Texas MonthlyKelleher continued the playboy theme by creating a "love" culture at Southwest. The carrier was called the "love airline,” automatic ticket dispensers were "love machines," inflight snacks were "love bites," and drinks were "love potions."Southwest "love" adSouthwest AirlinesSource: Texas MonthlyThe airline also crafted its own special inflight cocktails, which were free for passengers. A few were appropriately named Kentucky Matchmaker, the Pucker Potion, and the Lucky Lindsay.Southwest Airlines flight attendant preparing beverage orders in the galleySouthwest AirlinesSource: Texas MonthlyHe even went on to create ads centered around humor and attractive women. In the context of the 1970s, using attractive female flight attendants to gain customers was an industry norm.A 1968 photo of three flight attendants for Southwest AirlinesAlan Band/Keystone/Getty ImagesSource: Texas MonthlyIn 1972, Southwest made a game-changing, innovative marketing move. The company introduced the "two-tier" fare system, which established two separate price points aimed at different types of travelers.A Southwest Airlines Customer Service Agent checks in a Customer at the gateDavid Woo/Southwest AirlinesSource: SouthwestThe fares were the regularly priced "Executive Class Service" at $26 one-way and the "Pleasure Class" at $13 one-way or $25 roundtrip. "Pleasure Class" fares were available after 6:59 p.m. on weekdays and all day Saturday and Sunday.Southwest airlines customer service agents with customers at the ticket counterSouthwest AirlinesSource: SouthwestThe two-tier structure was a wild success, with Southwest increasing its average passenger load from 17 before the move to 75 after.Southwest pilotsSouthwest AirlinesSource: SouthwestIn 1973, the company launched a $13 one-way "half-fare" sale on all flights to San Antonio. Southwest's rival, Braniff, responded with its own "get acquainted sale" with $13 fares between Dallas and Houston. This was the start of the $13 Fare War.Southwest’s ad declaring war against Braniff’s fare cutSouthwest AirlinesSource: SouthwestSouthwest knew $13 fares on its only profitable route would run it straight into bankruptcy, so King quickly came up with a marketing campaign that would put Southwest on top. "Nobody's going to shoot Southwest out of the sky for a lousy $13," read the bold ad.Southwest ad against Braniff's $13 fare warSouthwest AirlinesSource: SouthwestSouthwest matched Braniff's fare between Dallas and Houston, which was met with praise and respect from customers. As part of the campaign, the airline also offered a free fifth of liquor for passengers who paid the full $26 fare.Ticket agent poses with a bottle of Chivas Regal in front of adSouthwest AirlinesSource: SouthwestBusiness travelers loved the promotion, and lucky for Southwest, three-fourths of its customers opted to pay full price and pocket the free booze. The airline soon became a fan favorite among many Texas business communities, and Braniff was fuming.Southwest customer holding advertisement and receiving free liquorSouthwest AirlinesSource: SouthwestBy the end of 1973, Southwest finally turned its first profit and would continue to profit for 47 years until the coronavirus pandemic ended the streak. Meanwhile, Braniff lost the battle and the war, ceasing operations in 1982.Braniff Airways aircraft in PeruCarl & Ann Purcell/Getty ImagesSource: Southwest, Braniff International Airways BoutiqueSouthwest's early challenges did not end with Braniff. In 1964, the Civil Aeronautics Board demanded the city of Dallas build an airport to serve the entire Dallas/Fort Worth area. In 1968, every air carrier operating out of Love Field agreed to move to DFW when it opened in 1974.British Airways Concord at DFW in 1973 after the airport was finished-/AFP via Getty ImagesSource: Encyclopedia.comHowever, Southwest was not a part of that agreement and filed suit that it would not move from Love Field when the new airport opened. The airline claimed there was no legal reason to end commercial traffic at Love Field and that the company made no written agreement to move its operations.Concord and Boeing 747 at DFW after the airport's completion in 1973-/AFP via Getty ImagesSource: Encyclopedia.comThe city and the DFW Airport Board sued Southwest, saying the CAB rule applied to the airline even if it was made before Southwest was officially founded. However, Southwest argued that its intra-state flights fell outside the jurisdiction of the CAB, so it did not have to leave Love Field.Opening day of new Love Field terminal in 2013Southwest AirlinesSource: Encyclopedia.comA federal district court agreed with Southwest and ruled that it could operate out of the airport as long as it remained open. When DFW opened in 1974, every airline except Southwest left Love Field.Southwest aircraft takes off from Love Fieldstock_photo_world/ShutterstockSource: Encyclopedia.comSouthwest continued to grow through the 70s, acquiring 10 aircraft and carrying its five-millionth customer by the end of 1977.Southwest's 3 millionth passenger Bob Pianta in 1976 (middle)Southwest AirlinesSource: SouthwestBy 1976, Southwest Airlines had been profitable for three years and proven that government regulation was not necessary for airlines to be successful. Deregulation was a top priority for Jimmy Carter's administration, and it passed the Airline Deregulation Act in 1978, effectively abolishing the Civil Aeronautics Board.President Carter signs the airline deregulation bill at the White HouseBettmann/Getty ImagesSource: National ReviewFinally, Southwest Airlines was free to operate interstate flights and the airline began to thrive. Meanwhile, major carriers like Eastern Airlines, Trans World Airlines, and Pan Am spread themselves too thin as they tried to rapidly expand.Southwest Boeing 737-300Southwest AirlinesSource: US Centennial of Flight CommissionUnlike major carriers, Southwest maintained a simple strategy for success after deregulation, like only operating one aircraft type, cleaning the aircraft before landing to allow for a quicker turn, and focusing on humor in marketing.Southwest flight attendant cleans the aircraftSouthwest AirlinesSource: USA TodayAnd its strategy worked. Southwest was prospering while other airlines like Pan Am and TWA collapsed. However, it was not long before the Wright Amendment put another wrench in the company's plans.Colleen Barrett with Wright is Wrong petitionsSouthwest AirlinesAfter deregulation, Southwest wanted to commence interstate flights from Love Field to New Orleans in 1979, but officials at DFW airport feared the increased traffic would hurt the airport financially. So, US Congressman Jim Wright drafted, sponsored, and helped pass a bill restricting passenger traffic at Love Field.Wright is Wrong signSouthwest AirlinesSource: SouthwestThe law, known as the Wright Amendment, was signed in early 1980 and amended the International Air Transportation Act of 1979. It restricted flying out of Love Field to cities in Texas and the surrounding states of Louisiana, Oklahoma, Arkansas, and New Mexico. The law was meant to keep Southwest from expanding operations out of Dallas.Wright Amendment protestersSouthwest AirlinesSource: The Dallas Morning NewsIt only applied to carriers that operated aircraft with more than 56 seats, which Southwest did. So, the airline had to rely on short-haul flights in the five-state area to bolster Love Field operations.Southwest employees protest the Wright AmendmentSouthwest AirlinesSource: The Dallas Morning NewsIn 1997, Kansas, Alabama, and Mississippi were added to the list of reachable states. In 2005, Missouri was also added.Southwest employees celebrate end of Wright AmendmentSouthwest AirlinesSource: The Dallas Morning NewsHowever, in 2004, Southwest CEO Gary Kelly launched efforts to repeal the Wright Amendment, using the slogans "Set Love Free" and "Wright is Wrong" in the campaign.Herb Kelleher with "Wright is Wrong" sloganSouthwest AirlinesSource: SouthwestIn 2006, an agreement was made between Southwest, American Airlines, Dallas, and Forth Worth to phase out the law. They agreed that in eight years, the amendment would be gone, but until then, carriers could fly to any US destination out of Love Field as long as at least one stop was made in any of the nine states under the Wright Amendment.Passengers sit in new Love Field terminalSouthwest AirlinesSource: Southwest, The Dallas Morning NewsOn October 13, 2014, at exactly 12:01 a.m., a countdown clock at Southwest's Headquarters in Dallas hit zero, officially ending the Wright Amendment. A few minutes after, the airline's first scheduled flight outside of the nine Wright states took off from Love Field to Denver.Wright Amendment endsSouthwest AirlinesSource: SouthwestThe deal also capped the number of gates at Love Field to 20, and the airport still only has 20 to this day.Southwest aircraft at gate 2 at Love Fieldstock_photo_world/ShutterstockSource: The Dallas Morning NewsWhile the Wright Amendment restricted expansion out of Love Field, Southwest was still able to bolster its network out of other Texas cities in the 1980s, 1990s, and 2000s.Customer service employee at Houston HobbySouthwest AirlinesThroughout the 1980s, the airline expanded north into cities like Tulsa, Oklahoma City, and Kansas City, and west to Phoenix, Las Vegas, Albuquerque, and California. The airline moved east in the late 1980s with flights to Nashville and into the Midwest with flights to Chicago Midway and Detroit.Southwest flight takes off from VegasSouthwest AirlinesSource: SouthwestThe airline also updated its livery in the 1980s. Southwest wanted to stand out in the skies and make its brand easily recognizable, so it wrapped its fuselage in desert gold and other warm colors. It received its first 737-300 jet in 1984, dubbed Spirit of Kitty Hawk.Herb Kelleher with Spirit of Kitty Hawk aircraftSouthwest AirlinesSource: SouthwestSouthwest's flight attendant uniform was also updated by the 80s. Instead of hot pants and go-go boots, the airline allowed employees to wear real pants and skirts.Southwest Airlines 90s flight attendant uniformsSouthwest AirlinesSource: RackedIn the 1990s, the network expanded further east to cities like Baltimore, Cleveland, Columbus, Tampa, Fort Lauderdale, Providence, Islip, and Raleigh-Durham. The airline also began its Pacific Northwest expansion with the acquisition of Morris Air in 1994.Southwest aircraft dedicated to Rollin KingSouthwest AirlinesSource: SouthwestIn 1991, the "Friends Fly Free" campaign was launched to battle the recession. The promotion allowed anyone 18 or older to bring a friend of any age free on their flight. It was so popular that Southwest offered the promotion for the next five years.Southwest's Friend Fly Free adSouthwest AirlinesSource: SouthwestIn 1992, Southwest's most infamous marketing stunt occurred between Herb Kelleher and Kurt Herwald, chairman of Stevens Aviation.Kelleher and Herwald at the Malice in DallasSouthwest AirlinesSource: SouthwestSouthwest had been using the slogan "Just Plane Smart" in its ads, but Stevens Aviation sent a letter to Kelleher noting its similarity to its "Plane Smart" slogan.Kelleher wearing "Just Plane Smart" sloganSouthwest AirlinesSource: SouthwestInstead of entering a legal battle over the phrase, a Steven Aviation executive suggested an arm-wrestling competition between Herwald and Kelleher. The victor would have full rights to the slogan.Herb and Herwald arm wrestle at the Malice in DallasSouthwest AirlinesSource: SouthwestKelleher marketed the event, dubbed the "Malice in Dallas," which received worldwide press coverage. "Smokin" Herb Kelleher and "Curtsy" Kurt Herwald put on a full show at the arena, which even earned a congratulatory note from President George Bush.Malice in Dallas artwork in Southwest HQSouthwest AirlinesSource: SouthwestAt the turn of the century, Southwest revealed the livery that most people know today. The Canyon Blue color scheme debuted in January 2001.Debut of Southwest's Canyon Blue livery in 2001Southwest AirlinesSource: SouthwestWhile many airlines opted to introduce fees for things like checked bags and flight changes to recuperate funds, Southwest refused. Instead, the airline launched its "bags fly free" campaign which allows customers two complimentary checked bags. Southwest has not gone back on the offer to this day.Southwest ramp crew promotes free bagsSouthwest AirlinesSource: SouthwestThroughout the 2000s, Southwest continued to focus on humor in its marketing. Its Wanna Get Away commercials proved successful, which promoted $49 one-way fares.Southwest Boeing 737-800Steven M. KellerSource: SouthwestBy 2010, Southwest added "Transfarency" to its brand. The airline would not have any hidden fees and would remain customer-focused with an emphasis on Hospitality and Heart. The recognizable tri-color heart was added to its airplanes and workplace.Heart OneSouthwest AirlinesSource: SouthwestIn 2011, Southwest acquired AirTran Airways, which opened slots up out of Atlanta and gave it more network expansion opportunities in Mexico and the Caribbean. The two were fully integrated by 2014.Southwest acquires AirTranSouthwest AirlinesSource: SouthwestAlso in 2014, the company's livery got another new look, with a harder focus on the heart, a new logo, and a sleek new color scheme.Southwest Airlines' updated 2014 liverySouthwest AirlinesSource: SouthwestIn July 2014, the airline officially became international with its first flight to Oranjestad, Aruba. In the same month, Southwest also started service to Nassau, Bahamas, and Jamaica.First international Southwest flight lands in Montego Bay, JamaicaStephen M. KellerSource: SouthwestThe company's flight attendant uniform got an update in 2017, marking the first time in 20 years the airline changed the look. Womenswear included two dresses, one black with blue and red stripes and the other gray with red and black stripes. Menswear included a black blazer, a gray shirt and pants, and a red tie.2017 Southwest flight attendant uniformsSouthwest AirlinesSource: Travel + LeisureIn October 2017, Southwest became the launch customer for the Boeing 737 MAX 8 jet, with its first revenue flight occurring on October 1. However, the aircraft was grounded in 2019 after two fatal accidents involved the MAX. The airline did not fly the plane again until March 2021.Southwest Airlines Boeing 737 MAX 8Southwest AirlinesSource: SouthwestIn 2019, Southwest reached its goal of operating flights to Hawaii with its inaugural service from Oakland to Honolulu.Passenger boards first Southwest flight to HawaiiSouthwest AirlinesSource: SouthwestIn 2020, Southwest ended its 47-year profit streak when the coronavirus pandemic hit. Since last March, the airline has remained focused on the health and safety of its customers and employees.Southwest flight attendant greets passengers during the pandemicStephen M. Keller/Southwest AirlinesSource: CNNWhile the pandemic was a major blow to Southwest's operation, the carrier has continued to grow with 18 new cities announced in 2020.Passengers board Southwest flight during covid-19Stephen M. Keller/Southwest AirlinesSource: SouthwestAnd, it is continuing to expand with new routes and destinations, thanks to CEO Bob Jordan, who took over in February 2022.Southwest CEO Bob Jordan.Southwest AirlinesBob Jordan is Southwest Airlines' new CEO. Experts outline a 100-day plan for keeping customers, employees, and investors happySouthwest returned to profitability taking advantage of the post-pandemic travel surge.Southwest Heart OneSouthwest AirlinesSource: SouthwestWith Southwest's immense size, it has a lot of systems at play to keep it running efficiently and on time. But, sometimes a nasty winter storm can derail even the best carrier's operations.A Southwest Airlines pilot had to explain to a "comedian" why its not okay to joke about pilots flying under the influence.Elliott Cowand Jr/ShutterstockBut, Southwest suffered from more than just the weather in the holiday season of 2022.Canceled flight travelers line up in front of Southwest Airlines sign at Denver International Airport.Hyoung Chang/Getty ImagesCaptain Mike Santoro, vice president of the Southwest Airlines Pilots Association, told Insider the storm was the catalyst of the meltdown, but "outdated" scheduling software created the snowball.Southwest Airlines cabin.Thomas Pallini/InsiderFrustrated Southwest pilot and union rep says the airline's flight meltdown was caused by outdated scheduling softwareSouthwest confirmed to Insider that its systems were unable to handle the "magnitude" of disruptions, which amounted to over 7,000 from Christmas to December 28 alone.Travelers wait at a Southwest Airlines baggage counter to retrieve their bags after canceled flights at Los Angeles International Airport on December 26, 2022.Eugene Garcia/AP PhotoSource: FlightAwareThe company acknowledged its software needs an update, with a spokesperson saying, "we are focused on making investments in technology upgrades to work toward that solution."Passengers line up at the Southwest ticket desk at San Francisco International Airport on December 26, amid widespread delays and cancellations for the airline.Tayfun Coskun/Anadolu Agency via Getty ImagesDespite its operations issues in the holiday season of 2022, Southwest prides itself on being a customer- and employee-focused airline, bringing "LUV" to its operation, and keeping safety, hospitality, and customer service at the forefront of its mission. (LUV is its stock symbol.)Southwest AirlinesAccording to financial information company BrightScope, Southwest has one of the highest-rated employee 401k plans. Meanwhile, J.D. Power reported in May that customers ranked Southwest as having the best economy product in North America.The grieving owner is planning to sue the airline.MARK RALSTON/AFP via Getty ImagesSource: BrightScope, Delta has the best first class, and Southwest has the best economy seats — see how airlines rank for customer satisfactionHaley Woods, founder of Girls LOVE Travel — a Facebook group with over one million members — told Insider that when her flight was canceled over the holiday week, she encountered the most "professional" and "upbeat" Southwest employees.V_E/Shutterstock"While this disruption might derail others from using SWA in the future — their customer kindness has reminded me that I will absolutely be looking past this and onward for future adventures," she said.Passengers wait in line to check in for their flights at Southwest Airlines service desk at LaGuardia Airport, Tuesday, Dec. 27, 2022, in New York.Yuki Iwamura/APDespite all of the challenges the carrier has faced recently, from operational meltdowns to activist investors, Southwest has vowed to push forward, offering its passengers flights with friendly service at affordable prices.A Southwest Airlines Boeing 737 at a gate in Austin, TexasGeorge Rose/Getty Images