Quantcast

Southwest Airlines considers ending ‘Bags Fly Free’ amid investor pressure

Qantas launches mammoth Asia flight sale including Bali and Japan
New Update from Air Canada, WestJet, American Airlines, Delta, United, Southwest, Alaska, JetBlue Airways, and Sunwing: Airline Capacity Between Canada and US Slashed as Bookings Plummet Seventy Per Cent
Delta Cuts Two Domestic Routes
United Airlines Technicians Reject ‘Dead on Arrival’ Contract Proposal, Teamsters Say
The State of the Asia Pacific Airline Industry
Spirit Airlines to add Detroit nonstop flight out of Bradley International Airport
Major airline to launch new direct flights from Scotland to North America
Ryanair launches new ‘prime’ membership which saves passengers more than £400 a year
Judge Orders Boeing to Trial on 737 MAX Case
Qantas’ free international Wi-Fi to switch on from next week
The real reason Southwest is charging for bags now
Air France-KLM in ongoing talks with Air Europa on potential stake, CEO says
Frontier Savagely Shades Southwest After They Eliminated Longstanding Free Bag Policy, Sparking Backlash
Frontier Wants You to 'Divorce Your Old Airline' After Southwest Changes
Delta named one of Fast Company's Most Innovative Companies for sustainability initiatives
Passengers escape fiery American Airlines jet in Denver
Delta, American Dive On Slashed Outlooks; But Two Airlines Rally
Competitors are circling Southwest after the airline announced it's going to start charging for checked bags
Exclusive: Dominican Low-Cost Carrier Arajet Wants to Disrupt NYC Market
Boeing deliveries rise 63% in February from a year earlier
Transportation Secretary Duffy Lays Out 10 Ways the FAA Is Working to Upgrade Air Traffic Control and Make Flying Safer
EasyJet pilot Paul Elsworth suspended after flying too close to mountain
Delta Air Lines bets on ‘blended-wing’ flight to reduce emissions
Europe's airlines pivot to bite size M&A deals to limit cost, regulatory burden
Dave Emerson named new CEO of Virgin Australia, replacing Jayne Hrdlicka
Ryanair DELAYS controversial new boarding pass rule to avoid summer chaos
FAA Orders Inspection, Replacement of 737NG Engine Parts
Spirit Adds New Airport, Three Routes
Delta crash passengers should take the $30,000 payment, their lawyers say. Here’s why.
Budget airline launches new cheap flights to one of the UK’s top winter sun destinations
Southwest Airlines considers ending ‘Bags Fly Free’ amid investor pressure
Research
Webp p18pueyozwbyaegyt1fzg7i1qaau
View from the Wing | View from the Wing

Southwest Airlines is initiating redeye flights and exploring premium seating and assigned seats. The airline, known for its gradual approach to changes, faces increased pressure from an activist investor pushing for faster reforms. Among the potential changes being considered is the elimination of free checked bags for all passengers, a core element of Southwest's value proposition.

Southwest Airlines Co. has started surveying customers about possible modifications to its policy of allowing free checked bags, hinting at a possible shift in one of its hallmark perks. The survey targets select loyalty members and consumers, presenting hypothetical scenarios where bag fees would apply to lower-cost fares.

The survey outlines a scenario where Wanna Get Away fares, the most affordable option, would include only a personal item and carry-on bag. In contrast, Wanna Get Away Plus would offer one free checked bag. Higher-cost categories such as Anytime and Business Select would continue to provide two free checked bags.

Get the Newsletter
Sign-up to receive weekly round up of news from Sky Industry News
By submitting, you agree to our Privacy Policy and Terms of Service. By providing your phone number you are opting in and consenting to receive recurring SMS/MMS messages, including automated texts, to that number from our short code. Msg & data rates may apply. Reply HELP for help, STOP to end. SMS opt-in will not be sold, rented, or shared.

An anonymous source suggests that Southwest might be conducting these surveys expecting negative feedback from customers. "Many of the things under consideration," said the source, "and being pushed by Elliott Capital which is engaged in a proxy battle for control of the airline, are a bad idea."

Southwest has historically limited ticket sales to direct channels like its website, avoiding online travel agencies (OTAs) like Expedia to reduce costs and prevent price comparisons that don't account for included benefits such as free checked bags. However, recent regulatory changes may require airlines to display fares inclusive of fees like carry-on and checked bags.

The Department of Transportation (DOT) rules aimed at making fare comparisons more transparent have been delayed by federal court rulings. Nonetheless, Southwest has started allowing its fares to be displayed on platforms like Google Flights and Kayak.

International partnerships are another area Southwest has explored but not fully implemented. While it operates some international flights to nearby destinations, it lacks the extensive network reach of competitors like United, Delta, and American Airlines.

In terms of premium products, Southwest is considering offering more legroom seats and greater seat width through blocked middle seats or assigned seating throughout their cabins. This move could attract customers willing to pay extra for enhanced comfort and create stronger loyalty benefits.

During a second-quarter earnings call, Southwest indicated it would still offer free checked bags despite these considerations. The airline carries significantly more baggage than legacy carriers or ultra-low-cost carriers—a fact they believe demonstrates customer preference for this perk.

However, any basic economy-style product might limit passengers to one free checked bag instead of two. This change could narrow the gap between Southwest's fares and those of competitors when displayed through broader channels.

Eliminating 'Bags Fly Free' could also impact Southwest financially due to federal excise taxes on domestic fares that do not apply to ancillary fees such as bag charges—potentially saving competitors millions in taxes annually.

Elliott Management's involvement adds another layer of complexity as they push for new board appointments from various industry backgrounds. CEO Bob Jordan must navigate these pressures while maintaining the airline's unique brand identity.

Surveys can often serve as tools to support pre-determined decisions rather than genuine exploratory exercises. With Elliott Management exerting influence amid financial performance concerns, Jordan needs compelling arguments for any strategic direction he chooses.

Organizations Included in this History
More News

The Federal Aviation Administration (FAA) is investigating a close encounter between a Delta Air Lines Airbus A319 and a U.S. Air Force T-38 jet near Ronald Reagan Washington National Airport.

Apr 2, 2025

London Heathrow to New York’s JFK ranks as the busiest international route from Europe, according to recent data.

Apr 2, 2025

European airlines have reported stable demand for transatlantic travel despite ongoing political and trade tensions related to recent US policies.

Apr 2, 2025

The Boeing 737 MAX 8 remains a prominent player in the aviation industry, lauded for its capabilities and popularity among airlines, according to data from aviation analytics firm Cirium.

Apr 2, 2025

On March 29, 2025, Alaska Airlines announced plans to resume Boeing 737 MAX 8 flights to New York’s John F. Kennedy International Airport (JFK) starting in June.

Apr 2, 2025

Alaska Airlines is planning to introduce flights to Europe in 2026 following its merger with Hawaiian Airlines, which now allows it access to long-haul aircraft.

Apr 2, 2025