Southwest Airlines is making major changes that will reshape its identity. The airline, long known for its “two bags fly free” policy and open seating, announced on Tuesday that it will begin charging for checked luggage. This shift is part of a broader strategy to boost revenue and compete with other major airlines. But what do these changes mean for travelers? Here’s what you need to know.
Checked Bag Fees: Who Has to Pay?
Most travelers will now have to pay to check their bags. Only customers purchasing the top-tier Business Select tickets will still get two free checked bags. Additionally, A-List Preferred frequent flyer members will continue to receive two free checked bags, while A-List members and Southwest credit card holders will get one free checked bag.
How Much Will Checked Bags Cost?
Southwest hasn’t revealed the exact price yet, but bag fees on competing airlines like Delta, United, and American start at $35 per bag. Travelers can expect Southwest’s pricing to be similar.
When Do These Changes Take Effect?
The new baggage fee policy will apply to tickets purchased on or after May 28. You won’t have to pay for your checked bags if you’ve already booked a ticket before this date.
Will Carry-On Bags Still Be Free?
Yes! Carry-on bag policies remain unchanged, even for the airline’s upcoming basic economy fare. Every ticket will still include one free carry-on bag.
Preparing for More Carry-On Bags
With checked bag fees in place, Southwest expects more passengers to carry on luggage instead. The airline is introducing mobile bag-tag printers and new carry-on size guides to handle the increase. Additionally, Southwest will upgrade its Boeing 737-800s and Max aircraft with larger overhead bins to accommodate more carry-on bags.
Will Airport Lines Be Longer?
There’s a strong possibility. Southwest acknowledged that charging for checked bags will add an extra step at airport kiosks and ticket counters. The airline is redistributing staff and equipping them with mobile printers to speed up the process. However, longer transaction times and longer lines may still be expected.
Why Is Southwest Making These Changes?
Southwest is facing pressure to increase revenue and improve returns. The decision comes after activist hedge fund Elliott Investment Management took a stake in the company and pushed for changes.
Previously, Southwest estimated that charging for checked bags could bring in $1.5 billion in revenue but result in $1.8 billion in lost market share. Despite these concerns, the airline has decided to move forward with the policy shift.
What Other Changes Are Coming?
In addition to bag fees, Southwest is making several other major changes, including:
- Basic economy fares that are non-refundable and don’t allow flight changes.
- Same-day standby tickets will no longer be available.
- Flight credits will now expire after six months for basic economy tickets and 12 months for other fares.
- Open seating is ending. Southwest will introduce assigned seating and extra legroom seats to compete with full-service airlines.
Southwest Airlines CEO Bob Jordan believes these changes will encourage more travelers to sign up for the airline’s co-branded credit card. He also noted that selling tickets through third-party platforms like Expedia will help the airline grow its customer base.
Changes to Southwest’s Frequent Flyer Program
Southwest’s Rapid Rewards frequent flyer program is also shifting. Instead of earning points based on distance traveled, passengers will now earn miles based on how much they spend. Redemption rates will vary depending on flight demand, similar to other airlines’ loyalty programs.
A New Era for Southwest Airlines
These sweeping changes mark a turning point for Southwest Airlines as it moves away from the customer-friendly policies that once set it apart. While some travelers may be frustrated by the added costs, the airline believes this new direction will help it remain competitive and increase revenue. Whether these moves will pay off in the long run remains to be seen.