In a shift that marks the end of an era for budget-conscious travelers, Southwest Airlines announced the termination of its free checked bags policy, a cornerstone feature that has distinguished the carrier for over half a century. Come May 28, the "bags fly free" perk will become a privilege reserved only for the airline's elite tier of flyers and those purchasing pricier Business Select fares - as detailed in a report by Click2Houston.
The Dallas-based airline, facing pressure from activist investors to enhance profitability, has been undergoing significant changes, which recently included the controversial decision to scrap its open boarding system. With this latest announcement, Southwest's Rapid Rewards A-List Preferred Members and Business Select fare passengers will retain their two complimentary checked bags, while A-List Members and Rapid Rewards Credit Cardmembers will be eligible for one. However, catching on the trend against frugality, other passengers will soon be charged for their checked luggage, as confirmed by an article from CBS News.
Experts watching the airline industry speculate on the potential implications for customer loyalty and overall business health following the policy change. Henry Harteveldt, an analyst at Atmosphere Research Group, expressed concern to CBS News, saying, "This is how you destroy a brand. This is how you destroy customer preference. This is how you destroy loyalty. And this, I think, is going to send Southwest into a financial tailspin." With the bag fees' specifics yet to be revealed, there are apprehensions that Southwest is aligning with other carriers it once set itself apart from.
Beyond baggage fees, the airline intends to introduce a discounted basic economy fare class, with restrictions not unlike those of its competitors, starting the same day - aimed at attracting a different customer segment. Bob Jordan, President and CEO of Southwest, in a video statement, hinted at adapting to "what our customers want" in the post-Covid landscape which includes a "rise in premium demand, and a change in customer preferences," the significance of which CBS News highlighted. Even the Rapid Rewards frequent flyer program isn't immune; the new structure incentivizes pricier fares and imposes variable point pricing.
United CEO Scott Kirby called the policy change "the slaying of a sacred cow," saying it could boost the airline's profits. Delta's Glen Hauenstein mentioned that Southwest's customers might now be available for the taking, as per CBS News.
