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Southwest Airlines ends universal free checked baggage policy amid corporate changes

Southwest Airlines ends universal free checked baggage policy amid corporate changes
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Southwest Airlines | Wikipedia

Southwest Airlines announced Tuesday that it will begin charging passengers to check their bags for the first time in its history. Accompanying this change, the low-cost carrier (LCC) will also introduce basic economy fares.

The decision comes just weeks after the Dallas-based airline announced its first-ever corporate layoffs. These changes follow months of pressure from Elliot Investment Management, which now owns at least 10% of the airline.

"Flights booked on or after May 28th are subject to the new checked bag fees," said a company statement. However, the carrier has not disclosed how much it will cost. According to CNBC, “Two bags fly free” is a registered trademark on Southwest’s website. As such, the carrier will not exempt every passenger from this longtime amenity.

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Passengers who book flights with Business Select fares, Southwest's top fare class, and those who are Rapid Rewards A-List Preferred Members will be allowed two free checked bags. Additionally, one free bag will be allowed for A-List Members "and other select Customers," including passengers who are Rapid Rewards Credit Cardmembers.

This move marks a significant shift as the perk was one of its defining features, setting it apart from competitors for more than 50 years. However, it represents an effort to align with legacy rivals – American Airlines, Delta Air Lines, and United Airlines – which all charge for bags with few exceptions. A single checked bag on these airlines costs $35.

In its announcement, Southwest referred to the change as one of several “new initiatives that support business objectives and create choice for current and future” passengers.

In a statement, Bob Jordan, President and CEO of Southwest said: "We have tremendous opportunity to meet current and future Customer needs, attract new Customer segments we don't compete for today, and return to levels of profitability that both we and our Shareholders expect. We will do all this while remaining focused on what's made us strong—our People and the authentic, friendly, and award-winning Customer Service only they can provide. "

Simple Flying contacted Southwest for additional comments but a representative could not be immediately reached.

Another change passengers can expect is a new fare class called Basic fares, comprising the lowest-priced tickets available starting May 28th.

"These strategic moves aim to deepen loyalty between Southwest and its most engaged Customers," said another company statement.

Basic fares will precede assigned seating options and extra legroom choices. Additionally:

  • The number of Rapid Rewards points earned from qualifying flights has been adjusted.
  • Passengers earn most points when booking Business Select fares; fewer points accrue on Wanna Get Away or Wanna Get Away Plus fares.
  • The frequent flyer program will introduce variable redemption rates across higher-demand or lower-demand flights.
Southwest was previously the last major US airline offering free checked bags universally under their famous slogan “Bags fly free”. Fees have reached an all-time high recently; American introduced fees in 2008 starting at $15 per first checked bag. According to CNBC reports worldwide baggage fee revenue hit over $30 billion by last year alone!

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