Southwest Airlines (LUV) announced Thursday that it will get rid of open seating in a sweeping change from its decades long practice. Instead, it will begin assigning seats and offer premium, extra leg room seating.

Shares of the domestic carrier rose more than 2% in early trading.

Southwest CEO Bob Jordan said "our implementation of assigned and premium seating is part of an ongoing and comprehensive upgrade to the Customer Experience, one that research shows Customers overwhelmingly prefer."

The airline has had a tradition of open seating for more than 50 years. Customers taking longer flights preferred assigned seats, according the airline.

The changes come amid pressure from activist investor Elliott Management, who earlier this month warned of a proxy fight as it seeks a "new, truly independent" board of directors.

Southwest also announced it will add the introduction of overnight, redeye flights with the first routes starting on Valentine's Day in 2025.

The regional carrier also posted its quarterly results on Thursday. Adjusted earnings per share came in at $0.58 versus Wall Street estimates of $0.51. Revenue came in at $7.35 billion, roughly in line with analyst expectations.

Domestic carriers have faced headwinds in recent months, despite a strong summer travel season.

Increased competition and higher labor costs have weighed on profits. Domestic carriers have been forced to cut fares.

American Airlines (AAL) cut its forecast on Thursday, sending shares of the air carrier down 5%.

Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.