Southwest Ends Free Checked Bags After 50 Years
In a dramatic shift that has shocked loyal flyers, Southwest Airlines will begin charging for checked bags for the first time in its 50-year history. The Dallas-based carrier, long celebrated for its customer-friendly policies and fast turnaround, announced that the change will take effect in May. This decision has sparked thousands of complaints from customers who viewed free checked bags as a key reason to choose Southwest.
For decades, Southwest’s two free checked bags policy was a unique selling point that set it apart from competitors. “It was the only reason I flew Southwest,” said MaKensey Kaye Alford, a 21-year-old singer and actress from near Birmingham, Alabama, who is now reconsidering her loyalty. With the new fees, Alford admitted she would “definitely” consider other airlines when planning future travel.
The decision comes as part of a broader profit-seeking makeover at Southwest. Activist hedge fund Elliott Investment Management, a major shareholder, has been pressuring the airline to increase its revenue. Recent changes include assigned seating and basic economy tickets with fewer perks—moves that align Southwest more closely with traditional carriers like Delta and United. After the announcement, Southwest shares jumped nearly 9%, while rival airlines saw their stocks drop more than 11%.
CEO Bob Jordan explained at a JPMorgan conference that the change was driven by updated customer booking behavior on new channels such as metasearch engines. “Our previous analysis assumed bundled free checked bags were an asset, but actual behavior shows otherwise,” Jordan said. He added that the airline now benefits from executives with extensive experience in implementing baggage fees at other carriers, validating the new strategy.
Critics argue that charging for bags will hurt Southwest’s operational efficiency and customer turnaround times. Frances Frei, a Harvard Business School professor of technology and operations management, warned that increased carry-on baggage could slow operations and negate the airline’s fast turnaround advantage. “If you charge for bags, customers will likely carry more luggage on board, impacting our efficiency,” she noted.
Southwest has responded by preparing its employees for the transition. The airline is equipping gate agents with mobile bag-tag printers and creating new carry-on size guidelines to help customers avoid fees. Additionally, the company is speeding up retrofits on its Boeing 737-800 and Max aircraft to install larger overhead bins. COO Andrew Watterson emphasized that these measures will ensure that increased carry-on luggage does not affect the airline’s turnaround times.
Despite the backlash, Southwest is not abandoning perks entirely. Customers with a Southwest co-branded credit card or those in its premium loyalty tiers will still enjoy one or two free checked bags. However, for the majority of passengers, the days of completely free checked bags are over. This change marks another example of a once-generous policy being scaled back in a competitive industry increasingly focused on revenue generation.
As Southwest shifts its business model, industry analysts predict that the move could drive some customers to competitors like Delta and United. With airlines consolidating their market shares, this change may have far-reaching implications for customer loyalty in an industry already under pressure to innovate. For now, loyal Southwest fans must adjust to the new reality of paid baggage, a change that could rewrite the rules of air travel in America.
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Sources: AirGuide Business airguide.info, bing.com, cnbc.com