Southwest Airlines is ending its long-standing policy of free checked bags, marking a major shift in its customer-friendly pricing model.
The Texas-based carrier on Tuesday outlined several changes that it is making to drive revenue growth and return to a level of profitability that shareholders expect, including its baggage policy.
Passengers will be charged for their first and second checked bags for all flights booked on or after May 28, the carrier said in a statement. However, Rapid Rewards A-List Preferred members and customers traveling on Business Select fares will still receive two free checked bags, as the carrier aims to encourage more people to join its loyalty program.
SOUTHWEST ENDING ITS OPEN SEATING POLICY
Meanwhile, A-List Members and “other select customers” will get one free checked bag.
The carrier’s website has not yet been updated with the changes. However, the price of a third checked bag is to the tune of $150. Certain overweight bags will cost between $150 and $200, according to Southwest’s website.
CEO Bob Jordan said the move is part of an effort “to meet current and future customer needs, attract new customer segments we don’t compete for today.”
However, unlike rival carriers, Southwest upheld a policy allowing passengers to check free bags, appealing to a wide range of budget-conscious travelers. The policy, along with open seating, helped the carrier distinguish itself as one of the first to adopt and maintain its low-cost model. However, in recent years, financial challenges have forced the airline to reevaluate its approach.
SOUTHWEST AIRLINES EXITS MULTIPLE AIRPORTS AS BOEING TROUBLES WEIGH
Southwest officially announced in July that it would begin offering assigned seating and offering premium seating options on all flights – a move designed to boost profits by charging higher rates for premium seats across its entire network. The carrier had maintained a single economy-class cabin with open seating assignments for more than 50 years.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| LUV | SOUTHWEST AIRLINES CO. | 30.56 | +2.38 | +8.44% |
Southwest said it plans to offer a premium, extended legroom portion of the cabin and expects roughly one-third of seats across the fleet to offer extended legroom, which is in line with what industry peers offer on narrow-body aircraft.
The carrier has not specified a launch date for seat selection and premium seating. However, it will introduce a new basic fare for its lowest-priced tickets purchased on or after May 28, before these changes take effect.
