Southwest Airlines is making major changes to its long-standing policies, including eliminating one of its most famous perks—free checked baggage.
This shift comes after the airline also announced changes to its seating policies, ticket sales, and overall business strategy. Here’s everything you need to know about what’s changing and how it might impact travelers.
For nearly 60 years, Southwest has offered two free checked bags per passenger—a policy that set it apart from competitors. However, starting May 28, the airline will begin charging for checked bags.
Southwest CEO Bob Jordan cited the need to attract new customer segments and improve profitability. The airline is looking to align with industry standards, as most major airlines have long charged for checked baggage.
Despite its previous “Bags Fly Free” policy, Southwest still collected $73 million in baggage fees in 2023, mainly from overweight or excess luggage fees. However, this amount pales in comparison to competitors like American Airlines, which raked in $1.4 billion in baggage fees last year.
With Southwest eliminating free checked bags, some travelers may switch airlines. Delta CEO Ed Bastian noted that passengers who specifically chose Southwest for its baggage policy are now “up for grabs.”
Shares of Southwest (LUV) jumped 9% in premarket trading following the announcement, indicating investor confidence in the move.
In addition to baggage fees, Southwest has made several key changes:
In January, Southwest laid off 1,750 employees, marking the first mass layoffs in its history. These cuts are expected to save the airline $210 million in 2024 and $300 million in 2026.
Additionally, the company has undergone leadership changes:
Southwest’s changes mark a shift toward a more traditional airline model. While some customers may welcome assigned seating and premium options, others may be frustrated by baggage fees and basic economy restrictions.
Southwest Airlines Is Dropping Free Checked Bags—What You Need to Know was originally published on b1057.com
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