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Southwest Airlines will start filling planes to capacity after Thanksgiving as the airline posts a $1.2 billion 3rd-quarter loss

Southwest Airlines Boeing 737
Southwest Airlines will no longer be blocking seats on its aircraft come December. Carlos Yudica/Shutterstock.com

  • Southwest Airlines will begin filling all available seats on its aircraft come December 1.
  • The social-distancing measure was adopted by the airline early on in the pandemic, but Southwest is now joining the majority of airlines in the US in choosing not to block seats.
  • The policy shift came as the airline reported a $1.2 billion loss for the third quarter. 
  • Visit Business Insider's homepage for more stories.
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Social distancing in the skies is quickly vanishing.

Southwest Airlines announced Thursday it would no longer block seats on its aircraft starting December 1 as more airlines choose to fill their planes for the winter travel season. 

"Today, aligned with science-based findings from trusted medical and aviation organizations, we will resume selling all available seats for travel beginning December 1, 2020," CEO and Chairman of the Board Gary Kelly said in an earnings press release.

Flyers will instead be given the option to change to a less-crowded flight, a move also offered by American Airlines and United Airlines in lieu of blocking seats.

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The airline was an early adopter of the strategy directed at easing flyers back into the skies with some form of airborne social distancing, even if not quite 6 feet, Business Insider found on a June flight with the airline. But fall has seen a greater uptick in flyers, with October 18 seeing over 1 million daily passengers in the US, according to the Transportation Security Administration, for the first time since March, and airlines need additional capacity as losses continue to mount.

Southwest reported a $1.2 billion loss for a third-quarter that saw only $1.8 billion in operating revenue. Unlike traditional carriers, Southwest has few forms of ancillary revenue that it can fall back on, as seat assignments, checked bags, and changes are complimentary.

The change comes as Kelly reported during Thursday's third-quarter earnings call that the policy cost Southwest $20 million in lost revenue. 

Seats will still be blocked for the Thanksgiving holiday period, a normally busy time for the leisure-travel market on which Southwest has a strong grip, thanks to a large presence in sun destinations such as California, Arizona, Texas, and Florida. Flyers taking to the skies for Christmas, Hanukkah, or New Year's travel, however, are risking crowded flights.

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Delta Air Lines and Alaska Airlines will now be the only continental US airlines blocking middle seats through the holiday season. Alaska Airlines announced the extension in its third-quarter earnings announcement after reporting a net loss of $431 million under the generally accepted accounting principles.

JetBlue Airways stopped blocking all middle seats on October 15, shifting to a percentage-based capacity limit through December 1. Flights will be capped at about 70% capacity, according to The Points Guy.

Hawaiian Airlines is blocking middle seats on its aircraft until at least December 15, according to The Washington Post

Crowded flights aren't the only changes coming to Southwest flights. The Dallas Morning News reported the airline proposed that flight attendants pitch co-branded Southwest Airlines and Chase credit cards to reduce the pay cuts being considered.

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Southwest is also shifting its route network into new markets and major international airports that it has traditionally avoided in a cost-saving effort. November 15 will see the airline launch routes to Palm Springs, California, and Miami for the first time. It will also expand to Houston's George Bush Intercontinental Airport and Chicago's O'Hare International Airport in 2021. 

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