Southwest's Bags

From Yahoo/Business Insider:

“Southwest will charge for bags for the first time, months after saying it wouldn't”

Southwest Airlines is set to charge passengers to check bags for the first time. The new policy takes effect from May 28 and is the latest fundraising move from the airline. As recently as September, the airline said it wouldn't make customers pay for checked bags. Southwest Airlines announced Tuesday that it would start charging passengers to check bags for the first time. The offer of checking two bags for free has long been a popular foundation for the airline. "Two bags fly free" is listed as a registered trademark on Southwest's website. But from May 28, passengers who aren't part of a loyalty program or traveling on its most expensive fare, Business Select, will have to pay to check a bag. Frequent flyers with "A-List Preferred" status will still get two bags, while A-List level members and Southwest credit card holders will get one free checked bag. The airline said the move was intended to "deepen and reward loyalty" for its "most engaged customers." It added that it would also introduce a basic economy fare, with additional options for assigned seating and extra legroom. Charging for luggage is the latest move in the budget carrier's shake-up of its business model — as it has faced pressure from the activist investing firm Elliott Management. Just six months ago, the airline said it wouldn't start charging for bags.

In July, Southwest ended its long-standing open-seating model, which allowed passengers to choose their seats upon boarding. It also announced plans to let customers pay for seats with extra legroom. But "two bags fly free" appeared to be an untouchable perk. In an earnings call the same month, CEO Bob Jordan told analysts the airline wasn't planning "at this point" to start charging for checked bags. "After fare and schedule, bags fly free is cited as the No. 1 issue in terms of why customers choose Southwest," he added. The airline also stood firm on the policy as it outlined a three-year plan in September. It said research showed the policy set Southwest apart from its competition, and removing it would reduce demand and "far outweigh any revenue gains created by imposing and collecting bag fees." Like its previous moves, introducing checked bag fees brings Southwest in line with its competitors. According to the Bureau of Transportation Statistics, US airlines made $5.5 billion from baggage fees in the first three quarters of 2024.

^ Now I don’t see any real reason to fly Southwest. ^

https://finance.yahoo.com/news/southwest-charge-bags-first-time-111502476.html