Spirit emerges from bankruptcy; Southwest introduces checked bag fees

The airline also aims to modernize its fleet and improve customer experience through updated seating arrangements and improved in-flight services. Spirit intends to make strategic investments in technology upgrades and enhanced customer service training.

Meanwhile, Southwest Airlines announced it will begin charging for checked bags for most passengers starting May 28, 2025. This policy change ends Southwest's longstanding “bags fly free” policy and aligns it with other major US carriers that have long imposed baggage fees. Exceptions include business class passengers, upper-tier loyalty program members, and holders of the airline’s credit card.

Southwest CEO Bob Jordan stated that “we have tremendous opportunity to meet current and future customer needs.” The airline anticipates generating approximately $1.5 billion annually from the introduction of checked bag fees but expects potential losses from customers who may choose other airlines due to the new fees.

Delta Air Lines President Glen Hauenstein commented on this potential shift in customer preferences: “those customers are up for grabs.” Spirit Airlines views Southwest’s policy change as an opportunity to attract price-sensitive customers.

Beyond introducing checked bag fees, Southwest plans additional strategic changes such as assigned seating next year and introducing a basic fare aimed at attracting new customer segments.

Emerging from bankruptcy, Spirit is focused on returning to profitability while enhancing its market position through rebranding efforts aimed at shedding its no-frills image. Additionally, Spirit aims to expand internationally into leisure destinations in Latin America and the Caribbean.

Industry analysts predict these strategic shifts will significantly alter the competitive landscape in the US airline industry as both carriers navigate evolving market dynamics.