03/11/25 - The News

Tuesday, March 11, 2025

Southwest Airlines shifts to paid baggage policy to lift earnings

March 11, 2025 0

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Travellers deal with weather cancellations at Chicago Midway International Airport
A Southwest Airlines jetliner departs from Chicago Midway International Airport in Chicago, Illinois, U.S., December 27, 2022. REUTERS/Kamil Krzaczynski/File Photo Purchase Licensing Rights
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  • Southwest to charge for checked bags starting May 28
  • New fees aim to reward loyalty and boost profits
  • Baggage fees could add $1.5 billion revenue annually
    • Its "bags fly free" policy has been an outlier in the airline industry. Southwest is the only major U.S. carrier that allows customers to check two bags at no cost, a strategy that company executives have said differentiates it from rivals.
    But the policy change, which would take effect on May 28, runs the risk of driving away customers. Delta Air Lines (DAL.N)
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     President Glen Hauenstein said on Tuesday some of Southwest's customers are now up for grabs.
    Some analysts also expressed concerns about its impact on the airline's brand. "We were not supporters of bag fees," said Savanthi Syth, an analyst at Raymond James.
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Southwest ends its trademark ‘bags fly free’ policy for many customers

March 11, 2025 0

 The bag charges will apply to flights booked on or after May 28. Customers with loyalty status will still be able to check one or two bags for free.

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Free checked bags has been a hallmark of Southwest Airlines for decades. (David Zalubowski/AP)
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Southwest Airlines will stop offering two free checked bags to most customers.

The curtailment of one of the airline’s signature offerings — “Bags Fly Free” is listed as a company trademark — comes as it has faced investor pressure to boost profits. The carrier said in February it would lay off 15 percent of its workforce and last year abandoned the open-seating policy that helped establish its egalitarian identity.

The bag charges will apply to flights booked on or after May 28, the airline said in a Tuesday statement. Customers with loyalty status will continue to get some free bags; A-List members and some other customers will get one free checked bag while A-List Preferred members, and those booking business-select tickets will continue to get two, the airline said.
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