Southwest Will Begin Charging for Checked Bags, Ending a Beloved Policy
Published On Mar 11, 2025, 8:47 AM
Southwest Airlines has announced it will begin charging fees for checked bags starting May 28, a significant change that eliminates a key feature that distinguished it from other airlines. Customers with high loyalty status will remain exempt from these fees, but most travelers will now need to pay for checked baggage. The decision stems from investor pressure as the company seeks to boost revenue amidst rising operational costs. Analysts predict this move could alter customer loyalty, potentially benefiting competitors like Delta Air Lines which have been adapting to market trends for premium services.
Stock Forecasts
LUV
Negative
With the introduction of checked baggage fees, Southwest Airlines risks losing its appeal to cost-sensitive travelers, potentially impacting its market share. However, if the move generates substantial additional revenue, it could stabilize the company's financial situation in the short term. Given the backlash from customers and industry commentators, the long-term implications could be negative for customer retention.
Related News
Southwest to lay off 15% of corporate staff in cost-cutting effort
Feb 18, 2025, 10:40 AM
Southwest Airlines cut hundreds of corporate roles, including senior leadership and director positions, as it works to trim its overhead and become a leaner company.
Southwest Layoffs Will Take 15% of Its Work Force
Feb 17, 2025, 6:54 PM
The company said the cuts, the first round of broad layoffs in the airline’s 53-year history, would affect mostly corporate employees.
Southwest Layoffs Will Take 15% of Its Work Force
Feb 17, 2025, 6:54 PM
The company said the cuts, the first round of broad layoffs in the airline’s 53-year history, would affect mostly corporate employees.