Southwest Airlines is making a major shift in its policies by introducing fees for checked bags, a move that marks the end of a decades-long tradition. The airline, which has long advertised its free baggage policy as a key differentiator from competitors, announced on Tuesday that most customers will now have to pay to check their luggage.
Who will be affected by the new policy?
Starting with flights booked on May 28, Southwest will require passengers to pay for checked bags unless they meet one of the following criteria:
- They are in the upper tiers of the airline’s Rapid Rewards loyalty program.
- They have purchased a business class ticket.
- They are holders of the airline’s co-branded credit card.
For all other travelers, the free two-bag policy will no longer apply. However, Southwest has yet to announce specific pricing details for checked bags.
A strategy to attract new customers and boost profits
Southwest Airlines CEO Bob Jordan explained the rationale behind the decision, stating that the company sees this as an opportunity to improve profitability while expanding its customer base.
“We have tremendous opportunity to meet current and future customer needs, attract new customer segments we don’t compete for today, and return to the levels of profitability that both we and our shareholders expect,” Jordan said in a statement.
This move aligns with a broader effort by the airline to generate more revenue and remain competitive in the changing airline industry.
A departure from long standing traditions
The decision to introduce baggage fees is not the only major change Southwest has recently announced. Less than a year ago, the airline also revealed plans to eliminate its open-seating policy, which has been a core part of its identity for more than 50 years.
Currently, Southwest passengers do not have assigned seats and instead choose their seats upon boarding. However, the airline has confirmed that it will transition to an assigned seating system starting next year.
How this change compares to other airlines
Southwest has long been one of the few U.S. airlines to allow passengers to check bags for free. Most major carriers, including American Airlines, Delta Air Lines, and United Airlines, charge fees for checked luggage, with fees typically ranging from $30 to $40 for the first bag.
By introducing these baggage fees, Southwest is following a similar pricing strategy to its competitors. However, it remains to be seen whether this shift will impact customer loyalty, as many passengers have chosen Southwest specifically for its baggage policy.
What’s next for Southwest customers?
For travelers who frequently fly Southwest, this change may prompt them to consider obtaining the airline’s credit card or achieving a higher status in the Rapid Rewards program to avoid baggage fees. Those who do not meet these criteria will need to adjust their travel budgets accordingly.
Meanwhile, Southwest has yet to disclose additional details about how this policy will be implemented, including whether baggage fees will vary based on destination or ticket type. More information is expected to be released in the coming weeks as the airline prepares for the policy rollout.
The bigger picture: Southwest’s future strategy
The introduction of baggage fees and assigned seating are part of Southwest’s broader efforts to modernize its business model and attract new customer segments. While these changes may boost revenue, they also risk alienating loyal customers who have appreciated the airline’s unique policies.
As Southwest moves forward with these updates, it will have to carefully balance its financial goals with maintaining customer satisfaction and loyalty.
