Why Southwest Airlines' New Choice Fare Tiers Are Creating Boarding Chaos It Didn't See Coming

Published Jul 24, 2026, 3:00 PM EDT Jasper Yu-Dawidowicz is a New York City-based aviation journalist with over six years of journalism experience across different publications. Currently a student at Purdue University, Jasper is pursuing dual degrees in Professional Flight and Finance, completing his flight training as part of Purdue's part 141 R-ATP eligible program. On January 27, Southwest Airlines formally ended its decades-long open seating policy. In its place came assigned seats and a new four-tier fare structure centered around Basic, Choice, Choice Preferred, and Choice Extra fares. According to the airline, the overhaul was designed to give customers greater control over their travel experience while creating more opportunities to personalize, and pay for, their journey. However, the boarding chaos that emerged following assigned seating began well before assigned seating went live. Months earlier, when Southwest ended its free checked bag policy, passenger behavior was quietly reshaped, since travelers were now forced to search for overhead bin space onboard the aircraft more often than before. A 53-Year-Old Business Model Gone In Months Credit: Shutterstock The speed of Southwest’s transformation marked the most significant change in the airline’s history. For over 53 years, the Dallas-based carrier’s business model was centered around simplicity, operating just one aircraft type, the Boeing 737, with quick turnaround times, low fares, and a unique open seating policy. While other airlines increasingly segmented their cabin classes, Southwest maintained a system that largely treated passengers similarly no matter their ticket. However, post-pandemic, that approach became increasingly difficult to sustain as the airline’s financial performance weakened. In May 2025, Southwest introduced the first major change that marked the beginning of the end for the old Southwest. This first change was the introduction of checked bag fees, doing away with a long-standing 'two bags fly free' policy at the airline. The reconfiguration of Southwest’s all-economy 737s soon followed, with a less than year-long retrofit project completed that introduced rows of extra legroom seats on all aircraft for the first time. However, these changes were not all as simple as the carrier had hoped, sparking both backlash from customers and boarding chaos in the aftermath of its introduction, as previously reported by Simple Flying. Credit: Shutterstock As part of Southwest’s dramatic rebranding, the carrier did away with its old fare names: Wanna Get Away, Wanna Get Away Plus, Anytime, and Business Select. In their place is now a four-tier fare structure that resembles what passengers can expect on most other airlines, including the three major US carriers. The new fare ladder includes ticket classes such as Basic, Choice, Choice Preferred, and Choice Extra, with each tier coming with additional benefits. For Basic fare flyers, the changes are the least forgiving. Under the new structure, a passenger with a Basic fare does not get advanced seat selection unless they hold a Southwest Rapid Rewards credit card or other elite status. Choice, a step above Basic, grants standard seat selection at booking, more flexible change and cancellation policies, as well as standard boarding. Choice Preferred and Choice Extra are now the two highest tiers on Southwest Airlines. Choice Preferred customers can choose a seat located closer to the front of the aircraft, cancel flights for free, and board through the priority lane. Meanwhile, the Choice Extra fare retains all the benefits of Choice Preferred while also adding the ability to select an extra legroom seat, add two checked bags for free, and enjoy a premium drink on flights longer than 251 miles. In addition to the four new fare classes, Southwest has also increased its emphasis on its loyalty programs and credit cards. Southwest elite status holders, either A-List or A-List Preferred members, get early boarding and seat-selection perks under the new system, while those with a Southwest credit card also get access to earlier boarding, no later than Group Five if not otherwise earlier. When taken together with the updated fare tiers, Southwest now has to take into account many considerations when determining who is most 'valuable' to the airline, often creating conflict between status perks and expensive tickets. Southwest’s Reinvented Boarding System Credit: Southwest Airlines Aside from the open seating reversal and implementation of checked baggage fees, the next most immediately visible change at Southwest was the abolition of its famous boarding system. Previously, Southwest customers received a specific boarding number dependent on when they checked in for an upcoming flight. This system did not take into consideration fare class or loyalty in the boarding process, unless purchased separately or included as a perk in the form of a credit card or A-List benefit. The new boarding system at Southwest, however, now represents what passengers can expect to find on virtually any other airline in the United States. When the carrier’s original assigned-seating boarding order launched in January, it included eight numbered groups, with extra-legroom passengers and top-tier credit card holders and Rapid Rewards elites boarding the earliest. This boarding logic made sense initially as it rewarded Southwest’s highest-value customers with early boarding. However, the new hierarchy created newfound frustration and headaches for passengers and the airline alike. Because extra-legroom seats sit at the front of the cabin, and because those passengers board in the earliest groups, bin space near the front of the plane began filling up much faster than expected. This led to passengers with assigned seats finding overhead bins near their rows already full, causing delays in the boarding process as they searched for empty bins elsewhere, per View From The Wing. Boarding Chaos: A Five-Fold Increase In Gate-Checked Carry-On Bags Credit: Southwest Airlines A major contributing factor to Southwest’s boarding chaos was the removal of its long-standing two-free checked-bag policy. When Southwest began charging for checked bags, $35 for the first bag and $45 for the second, many passengers who used to check their luggage for free started to bring a free carry-on into the cabin instead. Under Southwest’s open-seating policy, the new checked-bag fee was mitigated by the fact that passengers could self-sort. In the seven months between May 2025 and January 2026, travelers would simply find seats with overhead bin space above them, preserving Southwest’s efficient boarding process even as more bags moved into the cabin. However, with overhead bin space and checked bag fees, along with bins that fit suitcases only on their long sides rather than stacked flat like books, the way many competitors’ bins do, passengers arriving at their assigned seats often found the bins above them already full. This forced them to search elsewhere and delayed the boarding process for everyone behind them. According to Southwest’s executive vice president of operations, Justin Jones, Southwest experienced a fivefold increase in gate-checked carry-on bags, calling it a 'curveball' for the operations team. Many customers boarding towards the end of the boarding process, often in groups six, seven, or eight, are forced to check their carry-ons at the gate simply due to overhead bins already being full on the aircraft. Backlash & Newly Implemented Changes Credit: Shutterstock Southwest’s transition has not occurred without significant passenger frustration. Many longtime customers criticized the airline for abandoning the features that made it unique. However, it wasn’t only passengers who were unhappy with the new changes. Southwest’s flight attendant union has also pushed back on how the rollout was handled, according to reporting from Men's Journal, accusing management of “placing [them] once again directly in the line of fire with frustrated customers, and pitting workgroups against each other through poorly thought-out plans.” To its credit, Southwest hasn’t ignored the backlash. Soon after the January 27 open seating launch, the airline began rolling out a series of fixes aimed at improving the bin-space issue. Chief among these included the announcement of retrofitting its fleet of aircraft with overhead bins capable of holding up to 50% more bags, expected to be installed on at least 70% of its fleet by the end of the year. Customers seated in extra legroom seats also gained access to dedicated overhead bins, meant to guarantee space for those paying a higher fare. In April, Southwest increased its emphasis on loyalty members, with those holding A-List and A-List Preferred status boarding before revenue Choice Extra or extra legroom seat passengers. Additionally, A-List and A-List Preferred members can now also extend their benefits to eight travel companions, expanding the value of the carrier’s loyalty benefits. A Successful Financial Transformation So Far At its core, Southwest’s transformation was for financial reasons, and seems to be succeeding, at least so far. In its first-quarter 2026 earnings report, Southwest posted record operating revenue of $7.2 billion, with revenue per available seat mile up 11.2% year-over-year, above the airline’s own prior guidance. Compared to Q1 2025, Southwest swung from a $149 million net loss to a $227 million profit in Q1 2026, representing a significant improvement from just a year earlier. One of the clearest signs the new fare structure is working as intended for Southwest is the buy-up rate. The carrier reported that roughly 60% of customers upgraded from the base product in the first quarter of 2026, up from approximately 20% in 2025, a threefold multiplier that shows travelers are willing to pay extra to avoid the Basic fare restrictions. CEO Bob Jordan has told investors that these figures represent a structural shift in how the carrier generates revenue and is not simply a demand recovery. For passengers, many of these changes make Southwest more similar, if not nearly identical, to the traditional operating practices of other airlines. As the carrier continues to install larger overhead bins onto its aircraft, the airline’s new boarding process will continue to speed up, but the first few months of assigned seating revealed just how difficult it can be to replace a long-standing business model.