For the first time in its history, Southwest Airlines will require passengers to pay fees for checked baggage, marking a major shift from its long-standing “bags fly free” policy.
The airline announced on Tuesday that customers purchasing tickets starting May 28 will have to pay for checked bags unless they qualify for specific exemptions.
Frequent flyers with “A-List Preferred” status will still receive two free checked bags, while A-List members and Southwest credit card holders will get one free checked bag.
However, the airline has not disclosed the exact fee amount. For comparison, major competitors like Delta, American, and United charge around $35 for a first checked bag, with higher fees for additional bags.
The decision comes amid efforts to boost revenue and respond to pressure from activist investors.
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COO Andrew Watterson told CNBC, “What’s changed is that we’ve come to realize that we need more revenue to cover our costs.” Despite previously estimating that eliminating free bags could cost the airline $1.8 billion in market share, Southwest now believes the impact will be lower with these strategic adjustments.
Alongside baggage fees, Southwest is introducing other major changes. A new basic economy fare will be available for the lowest-priced tickets, and adjustments to the Rapid Rewards program will align frequent flyer miles with ticket spending.
Additionally, flight credits for tickets purchased after May 28 will expire within a year or sooner, depending on the fare type.
This move follows a series of recent shifts for Southwest, including the introduction of assigned seating, the sale of premium seats with extra legroom, and the launch of overnight flights in February. The airline also announced a 15% reduction in its corporate workforce, eliminating about 1,750 jobs to cut costs.
For longtime customers, the end of free checked bags represents a significant departure from the Southwest experience. As the airline adapts to financial pressures, passengers will need to adjust to this first-time baggage fee rule when booking flights after May 28.
(NEW YORK POST)
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