Southwest Airlines is ending its policy of free checked bags, marking a significant shift in its business model as the carrier aims to boost revenue and attract new customers. Starting Wednesday, most passengers will be charged $35 for their first checked bag and $45 for their second checked bag on flights booked or changed after that date.
However, Rapid Rewards A-List Preferred members and customers traveling on Business Select or Choice Extra fares will still receive two free checked bags, while A-List Members and Rapid Rewards Credit Cardmembers will get one free checked bag. The carrier is also launching a new basic fare, its cheapest but least flexible option.
The move is part of Southwest’s efforts to adapt to changing customer needs and attract new customers. CEO Bob Jordan said the changes are aimed at “meeting current and future customer needs” and “attracting new customer segments we don’t compete for today.”
Southwest had long been known for its free checked bags policy, which helped distinguish it from rival carriers in the low-cost airline market. However, the carrier has faced financial challenges in recent years, forcing it to reevaluate its approach.
The changes follow other recent moves by Southwest, including the introduction of assigned seating and premium seating options on all flights. Reservations for flights with assigned seats are expected to start in 2025, while customers will soon have new fare options and seat choices.
Southwest’s shift in business model is part of a broader effort to drive revenue growth and navigate economic uncertainty. The carrier has withdrawn its financial forecast due to tariffs and will reassess its outlook later this year.
Source: https://www.foxbusiness.com/fox-news-travel/southwest-airlines-ends-era-free-checked-bags-profit-pressures-mount