Southwest Airlines Boeing 737 MAX pushed back the door from the San Diego International Airport in San Diego on August 24, 2024.
Kevin Carter | Getty Images
Southwest Airlines Tuesday announced that it was once unthinkable: It will begin Charge customers Check your luggage.
This is a $300 million gamble. Last year, Southwest said its “rigorous research” found that it would lose so much market share if it started charging bag fees. The policy has distinguished the Southwest from its competitors for decades.
Get rid of the famous “two bags for free” strategy is A lot of push In operators to abandon their long-term customers’ benefits and policies. Southwest also announced that it is from Open seating Go to a single-stage cabin to increase revenue. Another change announced on Tuesday is: Basic Economic Tickets that are not allowed for free changes.
Here is what travelers need to know about these changes:
Who will pay for the bag?
In addition to Southwest’s premium business fares, travelers who purchase any ticket will have to pay a fee to check their luggage. Customers who purchase business choice tickets will be able to check two bags for free.
Members of the top A-list preferential regular-client program will also receive two checked bags for free. Members at the A-level will be able to check a bag for free, and those with Southwest credit cards will also be able to check it for free.
How much does it cost to check a bag?
Southwest has not disclosed how much it will cost to check the bag, but the cost is $35 for competitors delta,,,,, Unity and American.
When will the new policy take effect?
Air tickets purchased on or after May 28 will take effect.
Why does this happen?
Southwest is under increasing pressure to boost revenue and boost returns after radical hedge funds Elliott Investment Management Last year, the airline held a stake and promoted changes to the operator’s business model.
Southwest executives have long told Wall Street investors and clients that its “two bags free” policy is sacred, which separates it from competitors.
On September Investor Day, the airline said it would reach about $1.5 billion if it collected baggage but lost $1.8 billion in market share due to policy changes.
What else happened?
a lot of! Southwest Airlines will launch a basic economic fare that is non-refundable and no changes are allowed. It does not allow waiting air tickets on the same day.
If not used, the flight credits for these “basic” tickets will expire within six months, while points for other flights will expire within 12 months. Previously, Southwest credits did not expire.
The airline said last year that it plans to start selling tickets in designated seats, ending its decades of open policy. It will also soon provide extra legroom for seats, which is a competition to compete with more full-service airlines.
