Southwest Airlines is making significant changes to its policies, as it moves away from its long-standing tradition of free checked baggage. Starting May 28, the airline will begin charging for the first and second checked bags, marking a departure from its iconic “bags fly free” slogan. However, members of the A-List loyalty program and those on business fares will be exempt from these fees. Southwest’s CEO, Bob Jordan, stated that this shift is aimed at meeting customer needs, attracting new segments, and ensuring profitability.
This decision represents a major shift for Southwest, which has always offered complimentary checked bags for nearly six decades. Despite previous assurances that charging for checked bags was not on the table, Southwest has now decided to implement these fees. The airline acknowledges potential operational challenges, such as delayed boarding due to increased carry-on luggage. While the exact costs for checked bags have not been disclosed, the change is expected to bolster Southwest’s financial performance, given its high volume of checked bags compared to other carriers.
In addition to the checked bag fees, Southwest has introduced other changes, including assigned seating, premium seats, and red-eye flights. These adjustments are part of a broader strategy following significant investments by Elliott Investment Management. Southwest aims to enhance profitability and address evolving customer preferences by diversifying its offerings and ticket sales platforms.
Moreover, Southwest recently announced plans to introduce “basic economy” fares with restrictions in May, as part of its efforts to appeal to a wider range of travelers. These modifications come on the heels of corporate layoffs and leadership changes within the company, signaling a period of transformation and adaptation to the evolving airline landscape.
CNN’s former chief financial officer Tammy Romo and chief administration officer Linda Rutherford will both retire from their roles in April. This article has been revised to include further details. Chris Isidore from CNN also provided insights for this report. To access more CNN news and newsletters, sign up for an account at CNN.com.
