“Southwest Shocks Travelers: Say Goodbye to Free Checked Bags!”🚨✈️

Southwest Airlines Drops Free Checked Bags in Major Policy Shift

Southwest Airlines, long known for its free baggage policy, is making a significant change. Starting May 28, passengers will now have to pay for their first and second checked bags. However, travelers who are A-List loyalty members or those booking business fares will still enjoy free checked baggage.

Breaking a 60-Year Tradition

Since its inception nearly six decades ago, Southwest has distinguished itself by not charging for checked bags, even as competitors introduced baggage fees. The airline even trademarked the phrase “Bags Fly Free” and used it as a central marketing strategy.

CEO Bob Jordan described the change as a necessary step toward growth and financial stability. “We have a great opportunity to meet evolving customer needs, attract new travelers, and restore profitability,” Jordan said in a press release.

A Surprising Reversal

Just last year, Jordan reassured investors that Southwest had no plans to introduce baggage fees, emphasizing that the policy was one of the top reasons customers chose the airline.

He had also acknowledged that charging for bags could slow boarding times, as more passengers would bring carry-on luggage, leading to overcrowded overhead bins. When this happens, airline crews must relocate some carry-ons to the cargo hold, causing delays.

Financial Impact of the New Fees

Southwest has not yet announced how much it will charge for checked bags. However, the change is expected to generate a significant revenue boost.

Even without charging for the first two checked bags, Southwest still earned $73 million in baggage fees in 2023 and $62 million in the first nine months of 2024. These fees mainly came from overweight and excess baggage charges. However, these numbers are small compared to other major airlines:

American Airlines: $1.4 billion in baggage fees (2023)
United Airlines: $1.2 billion in baggage fees (2023)
Delta Air Lines: $985 million in baggage fees (2023)

Competitors Eye an Opportunity

With Southwest’s major policy shift, competing airlines see a chance to win over some of its loyal customers.

Delta CEO Ed Bastian commented on the change, saying, “Some customers specifically choose Southwest for its free baggage policy. Now, those travelers may look elsewhere.”

Investors reacted positively to the announcement, with Southwest Airlines (LUV) stock rising more than 9% in premarket trading.

More Big Changes at Southwest

This decision is part of a broader transformation at Southwest Airlines, following Elliott Investment Management’s $1.9 billion investment in the company last year. The investment firm has pushed for leadership changes and operational improvements to increase profitability.

Key changes include:

Assigned Seating: Southwest will move away from open seating in favor of assigned seats, aligning with traditional airlines.
Premium Seating Options: Higher-tier seating will be introduced for travelers willing to pay more.
Expanded Flight Offerings: The airline has added red-eye flights to its schedule.
Third-Party Ticket Sales: While Southwest previously only sold tickets on its website, they are now available on Expedia to attract more customers.
Basic Economy Fares: Southwest will launch budget-friendly tickets in May, similar to those offered by competitors.

Layoffs and Leadership Changes

As part of its cost-cutting strategy, Southwest laid off 1,750 corporate employees—equivalent to 15% of its corporate workforce—marking the first mass layoffs in company history. These job cuts are expected to save the company $210 million in 2024 and $300 million in 2026.

Additionally, Southwest welcomed a new Chief Financial Officer, Tom Doxey, formerly the president of Breeze Airways. Meanwhile, longtime executives Tammy Romo (CFO) and Linda Rutherford (Chief Administration Officer) are set to retire in April.

What’s Next for Southwest?

Southwest is clearly shifting its business model, moving away from some of its most defining features. While these changes could increase profits, they might also alienate loyal customers who valued the airline’s straightforward pricing.

Will Southwest’s “Bags Fly Free” fans remain loyal, or will they seek alternatives? Would you still choose Southwest after this change? Let us know your thoughts!

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