Southwest Airlines' CEO told investors in a July 24 earnings call that the airline could eventually open its own lounges.

Southwest Airlines has announced a major change coming to its current seating system. The Texas-based airline previously had a “pick any seat” policy, allowing customers to purchase tickets in different boarding groups by selecting where they wanted to sit upon boarding the plane.

Southwest missed on sales and earnings last night. Revenues slipped only slightly year over year, but profits were down a big 33%. Southwest has announced a buyback of its stock, forecasting better profits ahead.

Just two months after ending its long-standing “Bags Fly Free” policy, the airline has announced when it will roll out assigned seating — a significant shift from its traditional boarding process. For decades, Southwest used a first-come, first-served system, along with free checked bags, that set it apart from its competitors.

Southwest stock dropped after it reported adjusted earnings of 43 cents a share on $7.2 billion in revenue, below Wall Street’s expectations.

The passenger jet was responding to an alert of another aircraft in the vicinity, federal authorities said. A Cold War-era military plane was nearby at the time.