05AB1E, 22 1616 15 bytes
Saved 6 bytes thanks to Nit noticing that the seat map could be taken as a string.
DŠvDyå·FyylsvDyå·Fyyl.;s]»
Explanation
DŠs # setup stack as <passengerlist>,<seatmap>,<passengerlist>
v # for each passenger y
Dyå # does a corresponding seat exist?
·F # multiplied by 2 times do:
yyl.; # replace the first y with a lowercase y
s # and swap the seatmap and passengerlist on the stack
] # end loops
» # join seatmap and passengerlist on newline and output