Southwest Airlines baggage fees mark a big shift as the airline moves away from its long-standing “bags fly free” policy. When the airline starts charging for checked luggage on May 28, non-premium members will be billed. Following pressure from investors and a more thorough organizational restructuring, this move was taken.
How Travelers Are Affected by the Policy Change
For many years, Southwest Airlines distinguished itself by providing every traveler with two complimentary checked baggage. The benefit will now only be available to a restricted group of premium members; other travelers will need to pay.
Due to this change, travelers can consider switching to other airlines that already charge for checked luggage, such as United or Delta.
Budget-conscious flyers will need to factor in baggage fees when comparing ticket prices.
Southwest may see a surge in credit card enrollments, as cardholders might receive baggage perks.
Competitors React to Southwest’s Decision
Airline executives see Southwest’s baggage fee decision as a potential win for their businesses.
United Airlines CEO Scott Kirby called it “slaying the sacred cow,” predicting that Southwest will face backlash.
Delta CEO Ed Bastian said customers who picked Southwest for free bags may now explore other options.
Even Amtrak joined the conversation, reminding travelers that it still offers two free carry-on bags.
What’s Behind Southwest’s Business Overhaul?
Southwest Airlines is making big changes to stay competitive. In addition to introducing baggage fees, the airline:
- Replaced open seating with basic economy and premium seating options.
- Laid off 1,750 corporate employees to cut costs.
- Added six new board members under investor pressure.
With Southwest’s stock down 26% in the last five years, while United’s stock surged over 80%, the airline is looking for ways to boost revenue. CEO Bob Jordan said the move would reduce costs and increase credit card sign-ups.
What’s Next?
The big question is whether passengers will stay loyal to Southwest or choose competitors. Will this change make flying more expensive for travelers? Stay tuned as the airline industry continues to evolve.
Source: Business Insider
