Southwest Airlines is ditching free checked bags for all customers, part of a broader business overhaul that has seen the airline do away with several policies that long differentiated it from competitors.
Starting on 28 May, the airline will begin charging checked-bag fees to customers who are not upper-tier members of its frequent-flier programme, those who do not have its Southwest-branded credit card, and those travelling on all but its most-expensive “Business Select” fare.
Southwest also intends that day to introduce a “new Basic fare” that will its lowest-price option. That change comes “in advance” of the carrier’s previously disclosed plan to begin charging for seat assignments and for extra-legroom seats, the airline says.
Southwest is also doing away with flight credits that do not expire. Starting on 28 May, the carrier’s flight credits for basic fares will expire six months after issuance, while credits for all other fares will expire after one year.
“These strategic moves, aimed to deepen and reward loyalty between Southwest and its most-engaged customers, create new opportunities to reach consumers who value fare above everything else,” Southwest says.
The carrier’s chief executive Bob Jordan adds that the changes will let Southwest “attract new customer segments we don’t compete for today, and return to the levels of profitability that both we and our shareholders expect”.
Southwest has been in upheaval recently as its managers have sought to remake the carrier following lacklustre financial results.
The changes, pushed by Southwest’s major shareholder Elliott Investment Management, have included ditching numerous policies that distinguished the airline, including open seating and free checked bags.
With the shifts, Southwest has adopted a fare model more akin to that of essentially all US competitors. Most US airlines now sell numerous branded fares that include varying degrees of extra services, from premium fares and bare-bones basic fares.
