Southwest Airlines has ended its decades-long policy of allowing passengers to check two bags for free, starting Wednesday. The airline will now charge $35 for a first checked bag and $45 for a second checked bag, with weight and size limits applying.
The change is part of Southwest’s efforts to boost profits and revenue amid financial pressure. Executives previously described the policy as key to differentiating the budget carrier from its rivals.
Those who don’t qualify for elite status or have purchased a business class ticket can expect to pay extra for checked bags. However, certain customers, including Rapid Rewards A-List preferred members and Business Select fare passengers, will still receive free checked bags.
The airline estimates that charging bag fees will generate $1.5 billion annually but will cost the company $1.8 billion in lost business due to customer dissatisfaction. Other changes include requiring portable chargers to be kept in plain sight and a shift towards basic fares on lower-priced tickets.
Southwest has been under pressure from activist investors to boost profits, leading to layoffs of 15% of its corporate workforce last year. The airline’s shares rose 3% at the opening bell on Tuesday as it announced the change to its baggage policy.
Source: https://apnews.com/article/southwest-checked-bag-5e1a887d57bf8d690f35ffab43572f3b