Southwest Airlines is evaluating cabin seating and cutting service at several airports to enhance financial performance, following a $231 million loss in Q1.

Southwest Airlines is currently reviewing potential improvements to its customer service, which includes updates to cabin seating.

Historically, Southwest is the only major airline in the U.S. that doesn’t assign seats ahead of time or impose baggage fees. Additionally, its fleet consists solely of single-cabin aircraft without any options for increased legroom.

On Thursday, Deutsche Bank’s investment analyst Michael Linenberg expressed optimism regarding Southwest’s initiative to revisit its customer service strategies.

In anticipation of assuming the role of CEO in early 2022, Bob Jordan indicated that Southwest might consider assigning seats.

Additionally, Southwest announced its plan to discontinue services at several airports as part of its strategy to boost operational efficiency and financial health. The airports being dropped from its service include Syracuse, NY; Bellingham, WA; Cozumel, Mexico; and Houston’s Bush Intercontinental.

The airline will also scale back its operations in Atlanta and Chicago’s O’Hare.

These changes were disclosed alongside a report of a $231 million net loss for the first quarter, with an operating loss of $393 million and revenues at the lower end of expectations at $6.33 billion.

Boeing delivery delays have also posed challenges for Southwest, leading to reduced capacity forecasts for the year and prompting further cost-reduction measures.

During the pandemic, Southwest added 18 airports to its network, including Syracuse, Bellingham, Houston Bush, and O’Hare, in an effort to expand its reach even as the aviation industry faced severe disruptions.

The company noted that its decision to exit or reduce service in these locations, including Cozumel and Atlanta, is part of an effort to reallocate resources from underperforming markets to more profitable ones.

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