After claiming it wouldn't, Southwest will now charge for bags for the first time
On Tuesday, Southwest Airlines declared that it would begin charging customers to check their bags.
The airline's popular foundation has long been the free two-bag check-up offer. Southwest's website lists "Two bags fly free" as a registered trademark.
However, starting on May 28, travelers on its most costly fare, Business Select, or those not enrolled in a loyalty program will be charged to check their bags.
A-List level members and Southwest credit card holders will receive one complimentary checked bag, while frequent travelers with "A-List Preferred" status will continue to receive two bags.
This action was taken to "deepen and reward loyalty" for its "most engaged customers," according to the airline.
Additionally, it stated that it would launch a basic economy fare with extra legroom and assigned seating options.
The low-cost airline has recently changed its business strategy by charging for luggage in response to pressure from activist investment firm Elliott Management. The airline announced just six months ago that it would not begin charging for bags.
Southwest discontinued its long-standing open-seating policy, which let travelers select their seats when they boarded, in July. Plans to allow customers to pay for seats with more legroom were also announced.
However, "two bags fly free" seemed like an inviolable benefit.
The same month, CEO Bob Jordan informed analysts during an earnings call that the airline had no plans to begin charging for checked baggage "at this point."
"Bags fly free is cited as the No. 1 issue in terms of why customers choose Southwest, after fare and schedule," he continued.
When the airline presented a three-year plan in September, it also reaffirmed the policy.
According to the report, research indicated that the policy distinguished Southwest from its rivals, and its removal would lower demand and "far outweigh any revenue gains created by imposing and collecting bag fees."
Similar to its earlier actions, Southwest aligns itself with its rivals by implementing checked baggage fees.
In the first three quarters of 2024, baggage fees brought in $5.5 billion for US airlines, according to the Bureau of Transportation Statistics.