Business
Southwest ends open seating after 54 years. Here’s what the last flight was like
OVER THE PACIFIC OCEAN — The 112 passengers on this Southwest Airlines red-eye from Honolulu to Los Angeles were the last in the airline’s more than 54-year history to scramble for a seat on board.
Before dawn on Tuesday, Southwest ended its quirky (or anxiety-inducing, depending on the traveler) open-seating policy in favor of assigned seats for all customers as the carrier that prided itself on marching to its own drum becomes more like its rivals, under pressure to increase revenue.
The change means that all Southwest passengers will know exactly where they will be sitting before they board, and some of them will pay more than $70 per leg to have a new, roomy spot up front. Prices vary.
CNBC flew on the last open-seating flight and hopped on one of the first with seat assignments to talk to passengers and crew about how they felt about the change. Their feelings were mixed.
“It’s overdue, honestly,” said Lisa Tate, 33, a teacher from Honolulu, who was traveling to Atlanta via Las Vegas on Monday. “I like the reassurance that I can sit with my loved ones. It makes the situation less stressful.”
Vicki Economou, a 68-year-old based in Houston, who is in the process of retiring from running a family restaurant, felt otherwise. “Now they’re like everybody else, and nothing is setting them apart,” she said.
Economou said she might consider flying other airlines after years of Southwest loyalty because she doesn’t want to pay for seats.
“I’m not real happy about it,” she said. “I think that there are people that are getting money hungry.”
‘If you can’t beat them, join them’
Several Southwest flight attendants in Los Angeles said they were relieved about the change. One told CNBC that she is so happy she wants to cry because having customers roam up and down the aisle looking for a seat was stressful for crew members.
Other airline employees greeted the last open-seating passengers with applause though, serving them coffee and handing out commemorative bag tags and other souvenirs.
Southwest has been training employees for months, including offering suggestions on clear announcements that remind customers, especially in the early stages of assigned seating, how boarding will work.
CNBC heard some of the first eight-group boarding calls moments after landing at Los Angeles. Gate agents reminded customers several times that seats were assigned and told them where on their boarding passes they could find that information. Customers lined up next to the posts that used to designate the boarding groups just hours before, though the numbers were no longer there.
Digital boarding screens showing two lanes are already installed and will replace the metal stanchions at airports to instruct travelers when they can get on according to the new boarding order.
A new Southwest Airlines boarding sign at Los Angeles International Airport debuted Jan. 27, 2026.
Leslie Josephs/CNBC
Until Tuesday, Southwest was the the last U.S. carrier to board customers with an open seating policy that meant passengers could pick any seat they wanted once they got on the plane. Flyers would get assigned an A, B or C group and then a number to line up at the gate, and the higher the boarding group and number, the better their shot of getting a coveted aisle or window seat, largely depending on when they checked in.
The end of open seating is a casualty of today’s consumers, who Southwest executives have said are looking for more certainty on where they’ll sit as the airline’s once Texas-only network now sprawls from Hawaii to Costa Rica.
Eighty percent of Southwest customers prefer an assigned seat, market research found, CEO Bob Jordan told analysts in July 2024, when the airline announced the change.
The new seating policy comes after a push from investors who are hungry to see the airline capitalize on fees and catch up to rivals’ profit margins.
From 2018 through 2023, American Airlines, Delta Air Lines, Frontier Airlines, Spirit Airlines and United Airlines brought in $12.4 billion in seating fees, according to a Senate Permanent Subcommittee on Investigations report in 2024.
It’s not the only policy Southwest is changing. Less than a year ago, the airline ended its “two bags fly free” policy for all passengers and began charging for checked luggage. Bag fees brought in $5.5 billion for U.S. carriers in the first nine months of 2025 alone, according to the Transportation Department.
There are exceptions for big spenders on all fronts, as is the case with other airlines. Customers with certain credit cards, elite status or those who buy the most expensive tickets can forgo some fees and select the best seats.
Some of the first passengers to fly with assigned seats on Southwest Airlines on the new policy’s debut day Jan. 27, 2026.
Leslie Josephs/CNBC
“What it shows is that Southwest has basically said if you can’t beat them, join them, and I actually think this is going to be a positive move for Southwest,” said Henry Harteveldt, founder of the Atmosphere Research Group travel consulting firm. “This is a positive move for both what travelers want and for Southwest’s revenue and profitability. One reason why Southwest has struggled to attract more frequent travelers and poach customers from other airlines is its lack of assigned seating.”
Stock flies higher
Investors are already excited for the top-performing airline stock.
Southwest told investors on Thursday that it expects earnings to more than quadruple this year from 2025 to an adjusted $4 a share, at least, more than what analysts expected, sending shares surging by almost 20%, the biggest one-day percentage gain since 1978.
The stock is up more than 53% over the last 12 months through Thursday’s close.
Other initiatives could be on the way, but Southwest declined to provide details this week.
“We’re not done,” Southwest CFO Tom Doxey said in an interview after the carrier reported results. CEO Bob Jordan told CNBC last month that Southwest is exploring airport lounges.
On Thursday, however, Jordan acknowledged in an interview that this year’s expected spike in profits “would be difficult to duplicate in 2027” because it would be a comparison of two years with the same policies.
All aboard
The airline’s original plastic boarding cards have long been replaced with digital boarding passes, but customers for years set alarms to check in at the earliest moment they could — 24 hours before a flight — to make sure they got the best possible spot in line.
Comedian Adam Mamawala’s Southwest check-in alarm went off during a set in September 2022.
“I’ll tell you why,” he told the audience. “Tomorrow, at exactly 8:10, I’m flying home on Southwest,” he said. “You think I am going to end up in the C Group because I’m doing a show? Are you kidding me? I’m checking in right now.” He informed the audience that he got A51, and the crowd cheered. (He said he missed a Southwest check-in during a show the previous year and didn’t want it to happen again.)
Assigned seating is the last of the major policy shifts Southwest, which carries more customers in the United States than any other airline, has announced in the last two years.
The last Southwest Airlines passengers to fly without seat assignments line up at Daniel K. Inouye International Airport in Honolulu on Jan. 26, 2026.
Leslie Josephs/CNBC
Southwest in 2024 reached a settlement with activist investor Elliott Investment Management, which had called for management changes and noted in one presentation that the carrier had long eschewed what are now airline industry standards: restrictive basic economy tickets, baggage fees, premium products and seat assignments. Elliott declined to comment.
But there might be some growing pains for the airline as customers adapt to the changes.
Mamawala said he’s become a “loyal Delta man” because he flies the carrier more frequently now and that he has an American Express card that gives him access to the lounge at LaGuardia Airport.
But he still flies Southwest on occasion.
“Frankly I’m surprised that so many Southwest devotees are seemingly heartbroken,” he said. “We’re moving from chaos to order.”
— CNBC’s Erin Black contributed to this article.
Business
Budget 2026: Fiscal deficit, capex, borrowing and debt roadmap among key numbers to track – The Times of India
Finance Minister Nirmala Sitharaman is set to present her record ninth straight Union Budget, with markets closely tracking headline numbers ranging from the fiscal deficit and capital expenditure to borrowing and tax revenue projections, as India charts its course as the world’s fastest-growing major economy.The Budget will be presented in a paperless format, continuing the practice of recent years. Sitharaman had, in her maiden Budget in 2019, replaced the traditional leather briefcase with a red cloth–wrapped bahi-khata, marking a symbolic shift in presentation.Here are the key numbers and signals that investors, economists and policymakers will be watching in the Union Budget for 2025-26 and beyond:
Fiscal deficit
The fiscal deficit for the current financial year (FY26) is budgeted at 4.4 per cent of GDP, as reported PTI. With the government having achieved its consolidation goal of keeping the deficit below 4.5 per cent, attention will turn to guidance for FY27. Markets expect the government to indicate a deficit closer to 4 per cent of GDP next year, alongside clarity on the medium-term debt reduction path.
Capital expenditure
Capital spending remains a central pillar of the government’s growth strategy. Capex for FY26 is pegged at Rs 11.2 lakh crore. In the upcoming Budget, the government is expected to continue prioritising infrastructure outlays, with a possible 10–15 per cent increase that could take capex beyond Rs 12 lakh crore, especially as private investment sentiment remains cautious.
Debt roadmap
In her previous Budget speech, the finance minister had said fiscal policy from 2026-27 onwards would aim to keep central government debt on a declining trajectory as a share of GDP. Markets will look for a clearer timeline on when general government debt-to-GDP could move towards the 60 per cent target. General government debt stood at about 85 per cent of GDP in 2024, including central government debt of around 57 per cent.
Borrowing programme
Gross market borrowing for FY26 is estimated at Rs 14.80 lakh crore. The borrowing number announced in the Budget will be closely scrutinised, as it signals the government’s funding needs, fiscal discipline and potential impact on bond yields.
Tax revenue
Gross tax revenue for 2025-26 has been estimated at Rs 42.70 lakh crore, implying an 11 per cent growth over FY25. This includes Rs 25.20 lakh crore from direct taxes—personal income tax and corporate tax—and Rs 17.5 lakh crore from indirect taxes such as customs, excise duty and GST.
GST collections
Goods and Services Tax collections for FY26 are projected to rise 11 per cent to Rs 11.78 lakh crore. Projections for FY27 will be keenly watched, especially as GST revenue growth is expected to gather pace following rate rationalisation measures implemented since September 2025.
Nominal GDP growth
Nominal GDP growth for FY26 was initially estimated at 10.1 per cent but has since been revised down to about 8 per cent due to lower-than-expected inflation, even as real GDP growth is pegged at 7.4 per cent by the National Statistics Office. The FY27 nominal GDP assumption—likely in the 10.5–11 per cent range—will offer clues on the government’s inflation and growth outlook.
Spending priorities
Beyond the headline aggregates, the Budget will also be scanned for allocations to key social and development schemes, as well as spending on priority sectors such as health and education.Together, these numbers will shape expectations on fiscal discipline, growth momentum and policy support as India navigates a complex global economic environment.
Drinkers across the UK are set to face higher prices for wine and spirits as a significant increase in alcohol duty comes into effect this Sunday, 1 February.
Industry leaders warn that businesses “have no choice but to increase prices” to remain viable amid mounting financial pressures.
The tax levied on alcoholic beverages will rise by 3.66 per cent, in line with the Retail Prices Index (RPI) inflation, a measure confirmed in November’s autumn budget.
While the duty is directly imposed on producers, industry chiefs anticipate a “trickle down” effect, with consumers ultimately bearing the brunt of these additional costs.
Official figures illustrate the impact: the duty on a typical 37.5 per cent alcohol by volume (ABV) bottle of gin will climb by 38p to £8.98, inclusive of VAT.
Similarly, a 40 per cent ABV bottle of Scotch whisky will see its duty increase by 39p, reaching £9.51. A 14.5 per cent red wine will incur an additional 14p in duty.
The Wine and Spirit Trade Association (WSTA) highlighted that the duty on a 14.5 per cent red wine has now surged by £1.10 per bottle since the new alcohol duty regime was introduced in August 2023.
In response, the UK Spirits Alliance, representing hundreds of distillers, has urged the Chancellor to use an upcoming duty review to foster growth, address “spirits discrimination,” and establish a long-term strategy for the sector.
The duty structure, partly linked to drink strength, saw an overhaul in 2023, resulting in beer below 3.5 per cent ABV paying significantly less tax.
This has prompted some beer brands, such as Foster’s, to reduce their strength to 3.4 per cent in recent months to mitigate duty costs.
However, the latest increase will affect beer sold in both pubs and supermarkets, marking the first time pubs have been impacted since 2017.
Emma McClarkin, chief executive of the British Beer and Pub Association, stated: “These changes unfortunately increase the likelihood of further price rises, which no brewer or publican would want to inflict on their customers.
“For brewers, who already pay some of the highest rates of beer duty in Europe, this increase will add further strain to their already razor-thin profit margins and risk one of the UK’s world-renowned industries producing the greatest beers in the world.”
Miles Beale, chief executive of the WSTA, criticised the government’s approach: “Despite the OBR (Office for Budget Responsibility) at last acknowledging higher prices lead to a decline in receipts, the Government fails to recognise that its own policy is benefiting no-one.
“For the nation’s wine and spirit sector the complexities of price changes, especially for wine which is now taxed by strength, mean more red tape headaches ahead.
“Add to this all the other costs – including NI (national insurance) contributions, business rates and waste packaging taxes – and businesses have no choice but to increase prices in order to keep afloat, which unfortunately means consumers are going to take the hit once again.”
Braden Saunders, spokesperson for the UK Spirits Alliance and co-founder of Doghouse Distillery, Battersea, remarked on the timing: “The timing couldn’t be more ironic. Just as dry January draws to a close and people contemplate their first hard-earned drink, they’re met with higher prices at the bar.
“The spirits industry has been treated as a cash cow by consecutive governments, and the sector is on its knees.”
Allen Simpson, chief executive of UKHospitality, echoed these concerns: “Hospitality businesses are facing price pressures at every turn and our sector’s cost burden is growing at an unsustainable rate.
“Increases to alcohol duty, while not paid directly by operators, is another pressure, if it is passed on to businesses through higher drinks prices. We strongly urge suppliers to show restraint in doing so, recognising the economic pressure the sector is under.”
A Treasury spokesman defended the policy, stating: “For too long the economy hasn’t worked for working people, and cost-of-living pressures still bear down. That’s why we are determined to help bring costs down for everyone.
“It’s why we’re taking £150 off energy bills, increasing the National Living Wage, ending the two-child limit, rolling out free breakfast clubs for all primary school children, and freezing fuel duty, rail fares and prescription fees.
“We need to rebuild the public services we all rely on. We’ve put record funding into our schools and NHS to give every child the best start in life and bring down waiting lists.
“Alcohol duty plays an important role in ensuring public finances remain fair and strong and funds the public services people rely on every day.”
Last Updated:
Union Budget 2026, to be tabled by Nirmala Sitharaman, will focus on a detailed Part B, outlining India’s economic vision, reforms, and global strengths.
Finance Minister Nirmala Sitharaman to present the Union Budget in Parliament tomorrow, Feb 01.
Budget 2026: Union Budget 2026 to be tabled tomorrow, Sunday, February 01, 2026, is expected to be different and unique from earlier budgets delivered since Independence. It is expected that the Finance Minister Nirmala Sitharaman will focus more in detail on Part B than Part A, as seen in earlier budgets, government sources said.
Traditional Budget Structure Likely To Change
In past budget presentations, Part A of the Finance Minister’s speech typically carried extensive detail on economic conditions, fiscal numbers, and major policy announcements, while Part B was relatively brief and limited in scope. However, government sources said this long-standing format is set to change in the upcoming budget.
According to sources, Finance Minister Nirmala Sitharaman is expected to devote significantly more time and detail to Part B of the Budget Speech than seen in previous years. GoI sources said this shift reflects the government’s intention to present a more structured and forward-looking policy narrative.
Focus On Short-Term And Long-Term Economic Goals
The sources said Part B of the Budget Speech will place strong emphasis on both immediate economic priorities and long-term development goals. The section is expected to outline how the government plans to balance near-term growth, fiscal discipline, and social welfare with longer-term structural reforms.
Part B will articulate India’s economic vision as the country moves deeper into the second quarter of the 21st century, highlighting policy continuity as well as new initiatives aligned with evolving global and domestic challenges.
Showcasing India’s Strengths On The Global Stage
The sources further said Part B of the Budget Speech will offer a roadmap for showcasing India’s local strengths in a global context. This is expected to include an assessment of India’s current economic capabilities, sectoral advantages, and future growth potential.
The emphasis will be on positioning India as a competitive and resilient economy, while reinforcing its role in global supply chains and international markets.
Economists And Global Experts Watching Closely
Given the expanded scope and strategic intent of Part B, GoI sources said it is likely to draw close attention from economists, policy analysts, and global experts. The section is expected to serve as a key indicator of the government’s medium- to long-term economic priorities and reform trajectory.
January 31, 2026, 19:42 IST
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