WOW: Southwest Will Start Charging For Checked Bags

It’s formally the tip of an period for Southwest Airways, and the airline will lastly do what it has insisted for therefore lengthy that it wouldn’t even think about.

Southwest cuts two free checked baggage coverage

Southwest has lengthy been identified for providing two free checked baggage to all passengers, whatever the fare they e-book. This has been one of many main ways in which the airline has differentiated itself from the competitors.

For therefore lengthy, Southwest executives have insisted that that is the one policy that they weren’t willing to change, since they’ve claimed that the ticket income misplaced from altering this coverage would exceed the ancillary income. I assume there was a change of coronary heart, as a result of that may now not be the case.

For tickets booked as of Could 28, 2025, Southwest will change its checked bag policy:

• Southwest will proceed to supply two free checked baggage to Speedy Rewards A-Record Most well-liked members, and prospects touring on Enterprise Choose fares
• Southwest will supply one free checked bag to A-Record members, and people with a Speedy Rewards bank card will obtain a credit score for one checked bag
• Clients who don’t qualify for these advantages will likely be charged for each a primary and second checked bag

At the very least as of now, carry-on baggage will proceed to be complimentary for all passengers. This newest change follows Southwest not too long ago greatly cutting points earning on its Wanna Get Away fares, which was virtually a means of not directly making a primary financial system product.

Right here’s how Southwest CEO Bob Jordan describes this improvement:

“We’ve super alternative to fulfill present and future Buyer wants, appeal to new Buyer segments we don’t compete for as we speak, and return to the degrees of profitability that each we and our Shareholders anticipate. We are going to do all this whereas remaining centered on what’s made us sturdy — our Individuals and the genuine, pleasant, and award-winning Buyer Service solely they will present.”

It’s formally the tip of the outdated Southwest

We all know that Southwest has been beneath main strain to enhance profitability, given the activist investor the corporate has, within the type of Elliott Funding Administration. The airline has been pushed to enhance margins in any means potential. This has included all the things from introducing assigned and extra legroom seating, to having layoffs for the first time in the company’s history, to eliminating buyer pleasant insurance policies.

The gloves are lastly off, and now we’ll see what impression all of this has on the corporate’s backside line. Have been Southwest’s buyer pleasant insurance policies and good company tradition to the corporate’s detriment, or will activist traders study their lesson the onerous means? Solely time will inform…

Backside line

As of Could 28, 2025, Southwest will now not supply free checked baggage on all fares. These on the costliest fares and high tier elites will nonetheless get two free checked baggage, decrease tier elites and bank card holders will get one free checked bag, and others will get no free checked baggage.

How do you see this enjoying out for Southwest?