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Southwest Airlines ends free checked bag policy amid broader corporate changes

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Southwest Airlines ends free checked bag policy amid broader corporate changes
Policy
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Southwest Airlines | Wikipedia

Last week, Southwest Airlines announced a significant shift in its policy by introducing charges for checked bags, ending its decades-long tradition of offering this service for free. This change comes amid several other policy adjustments following Elliot Investment Management's $1.9 billion stake in the company, as Southwest seeks to enhance profitability under stakeholder pressure. While U.S. airlines collectively earn over $5 billion annually in baggage fees, Southwest has now decided to tap into this revenue stream.

The reaction from customers extends beyond the new checked bag fees. It encompasses a series of recent changes made by the airline, including the devaluation of its points-earning structure and the removal of seat selection options. These developments have significantly impacted customer confidence.

Beginning May 28, 2025, Southwest will charge most customers for their first and second checked bags with standard weight and size restrictions. Exceptions include Rapid Rewards A-List Preferred members (two free bags), Business Select fare customers (two free bags), A-List members (one free bag), and other select customers. Rapid Rewards Credit Cardmembers will receive credit towards one checked bag.

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Additionally, there has been a change in reward points earning policies for qualifying flights. Customers traveling on Business Select fares will earn more points than those on "Wanna Get Away" and "Wanna Get Away Plus" fares. Furthermore, variable redemption rates across higher-demand and lower-demand flights have been introduced.

Southwest is also set to introduce a new Basic fare for low-priced tickets purchased after May 28, ahead of offering assigned seating and extra legroom options. Flight credits issued for tickets bought post-May 28 will expire within one year or earlier depending on the fare type.

In response to these changes aimed at driving revenue growth while rewarding loyalty among engaged customers," These strategic moves," said Southwest." aimed to deepen and reward loyalty between Southwest and its most engaged Customers create new opportunities to reach consumers who value fare above everything else."

The airline aims to expand its customer base through widened distribution channels while increasing profitability." We have tremendous opportunity," said CEO Bob Jordan during an interview." To meet current and future customer needs attract new customer segments we don’t compete for today return to levels of profitability that both we our shareholders expect."

This comes alongside other initiatives like assigned seating options which were recently implemented as part of operational excellence efforts including partnership with Icelandair begun February mass layoffs announced last month first time history eliminating nearly corporate workforce approximately people

Customer sentiments reflect deep dissatisfaction with these changes moving away core values upheld decades According account narrated Dallas Observer “…but I loved Southwest Airlines anyway because loved me Now like everything else good world commandeered capitalism stuck paying shell company once was ”

" ...it feels like last good thing going bunch finance bros hate taken too us "

"I would rather have free main reasons still fly " said Dorothy Severson awaiting flight Chicago Midway Airport


Glen Hauestein President Delta Air Lines commented potential opportunity attract disenchanted customers Industrial Conference clearly some chose now those up grabs he said referring end check-in policy passengers throwing shade Dallas Mavericks aftermath decision adding fuel fire discussions around controversial move

Organizations Included in this History
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