Southwest Airlines will start charging for checked bags, ending its long-standing policy of free baggage. Learn about the changes and what it means for traveler’s.
- Southwest Airlines will begin charging customers a fee to check bags, starting with flights booked on May 28.
- The new policy affects passengers who haven’t reached the upper tiers of the Rapid Rewards loyalty program, bought a business class ticket, or hold the airline’s credit card.
- The airline did not outline the fee schedule but confirmed the change.
- Southwest has built years of advertising campaigns around its policy of letting passengers check up to two bags for free.
- The change is expected to attract new customer segments and return to profitability levels expected by shareholders.
- CEO Bob Jordan emphasized the opportunity to meet current and future customer needs.
- Less than a year ago, Southwest announced it was doing away with its open-boarding system.
- The airline expects to begin operating flights with passengers in assigned seats next year.
- Southwest announced last month that it was eliminating 1,750 jobs, or 15% of its corporate workforce.
- The job cuts are part of a plan to slash costs and transform the company into a leaner, faster, and more agile organization.
- Southwest’s stock rose more than 9% following the announcement.
- The airline estimated that charging bag fees would bring in about $1.5 billion a year but cost $1.8 billion in lost business from customers who chose Southwest for its generous baggage allowance.
- Delta Airlines President Glen Hauenstein and United CEO Scott Kirby predicted gains for their airlines due to Southwest’s decision.
- The change is seen as a significant shift in Southwest’s business model.
Southwest Airlines is making significant changes to its policies and operations to boost profitability and meet customer needs. The introduction of baggage fees marks the end of a long-standing perk, but the airline is confident that the benefits will outweigh the drawbacks.