At Southwest Airlines, bags will no longer fly free
- Share via
Southwest Airlines will begin charging customers to check their bags, ending a long-standing “bags fly free” policy that inspired loyalty and differentiated the brand from its competitors.
Starting with flights booked on or after May 28, only customers with certain qualifications will receive free checked bags, the airline announced Tuesday.
This includes preferred members of Southwest’s Rapid Rewards program, those flying business class and holders of the airline’s credit card.
For decades, Southwest offered two free checked bags to every customer and built advertising campaigns around the policy. At Southwest’s investor day in late September, executives said free bags were key in helping the budget-friendly airline stand out from its rivals. All other major U.S. airlines charge fees for checked bags.
“We have tremendous opportunity to meet current and future Customer needs, attract new Customer segments we don’t compete for today, and return to the levels of profitability that both we and our Shareholders expect,” Chief Executive Bob Jordan said in a statement accompanying the announcement.
Southwest will also offer a new basic fare on its lowest-priced tickets starting in May, in advance of offering assigned seating and extra legroom. The basic price is intended to “reach consumers who value fare above everything else,” the announcement said.
The airline announced last summer that it would do away with its open seating policy, a decades-long practice that allowed customers to select seats on a first come, first served basis. Some Southwest customers expressed disappointment that the company was straying from features that once defined the brand.
The popular low-cost airline Southwest announced major changes this week, including a switch from open to assigned seating that could ruffle feathers among loyal travelers.
The end of free checked bags is another perk that Southwest is eliminating in an attempt to increase profits. The airline has struggled recently and is under pressure from activist investors to boost revenue.
Last month, Southwest announced its plan to eliminate 15% of its corporate workforce, or 1,750 jobs, in the first major layoffs in the company’s history. The layoffs are part of a larger plan to cut costs and create a “leaner, faster, and more agile organization,” Jordan said at the time.
The airline estimated in September that charging fees for checked bags would bring in about $1.5 billion a year but would cost the company $1.8 billion in lost business from customers who were drawn to the free bag policy. Southwest stock rose more than 8% on Tuesday.
Rapid Rewards A-List preferred members and customers flying business class will still receive two free checked bags; regular A-List members, credit card holders and other select customers will receive one free checked bag.
The changes are intended to “deepen and reward loyalty between Southwest and its most engaged customers,” the airline’s announcement said.
The Associated Press contributed to this report.
Inside the business of entertainment
The Wide Shot brings you news, analysis and insights on everything from streaming wars to production — and what it all means for the future.
You may occasionally receive promotional content from the Los Angeles Times.
