After greater than 50 years of “two baggage fly free,” Southwest Airways will begin charging sure prospects bag charges, the airline introduced Tuesday.
The change comes after months of executives promising to not get rid of the airline’s well-known perk, with CEO Bob Jordan in a July earnings name saying after baggage fly free is cited among the many No. 1 motive why prospects select Southwest.
Nevertheless it additionally comes after months of stress from activist Elliott Funding Administration.
The agency took a stake within the airline final 12 months, CNBC reported. It additionally gained 5 board seats because it pushed for fast adjustments on the firm, which held on for many years — till now — to perks like free checked baggage, changeable tickets and open seating.
“Two baggage fly free” is a registered trademark on Southwest’s web site, CNBC’s report stated. However its choice to about-face on what executives lengthy forged as a sacrosanct passenger perk brings the most important U.S. home service in keeping with its rivals, which collectively generated $5.5 billion from bag charges final 12 months, in keeping with federal knowledge.
In a message to prospects Tuesday, Jordan stated the bag adjustments come because the airline has a “large alternative to satisfy present and future Buyer wants, appeal to new Buyer segments we do not compete for right this moment, and return to the degrees of profitability that each we and our Shareholders count on.”
In line with the Tuesday announcement, some Southwest Airways prospects could also be topic to bag charges, relying on their Speedy Rewards standing. Others shall be charged for his or her first and second baggage, beginning later this 12 months.
With the bag change quickly going into impact, this is what we all know now, and what prospects the adjustments will impression.
Will all Southwest Airways prospects be charged bag charges?
Southwest will proceed to supply two free checked Speedy Rewards, A-Checklist Most well-liked Members and Prospects touring on Enterprise Choose fares, the announcement stated. The airline may also provide one free checked bag to A-Checklist Members and different choose prospects, the announcement added.
For Speedy Rewards Credit score Cardmembers, Southwest will present a credit score for one checked bag.
“Prospects who don’t qualify for these free bag choices shall be charged for his or her first and second checked baggage,” Southwest stated.
When does the change go into impact?
Adjustments will apply to flights booked on or after Might 28, 2025, Southwest stated.
How a lot will baggage value?
Southwest didn’t elaborate on pricing of checked baggage, and didn’t instantly reply to NBC Chicago’s request for remark.
Southwest’s new ‘Primary Fare’
The airline additionally stated Tuesday that it’s going to launch a brand new, “Primary” financial system fare, “upfront of providing assigned seating and additional legroom choices.”
The fundamental fare shall be out there for tickets bought on or after Mary 28, ,2025, the airline stated.
Speedy Reward, flight credit score adjustments
Southwest may also change the best way prospects earn Speedy Rewards: Prospects will earn extra of the frequent flyer miles relying on how a lot they pay, the announcement stated.cc Redemption charges will range relying on flight demand, a dynamic pricing mannequin opponents use.
Southwest additionally stated flight credit for tickets for tickets bought on or after Might 28 will expire one 12 months, or earlier, relying on the kind of fare bought.
