New York
CNN
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Southwest Airways has put a price ticket on checking baggage, a coveted free perk that’s about to vanish as a part of substantial adjustments the provider is making to its service.
For flights booked on Could 28 and after, checking the primary bag will price $35 and $45 for the second piece of baggage. If the ticket was purchased previous to Wednesday, the shopper will nonetheless obtain two free checked baggage, the corporate introduced.
There are some exceptions, nevertheless: Members within the A-Checklist tier of its Speedy Rewards loyalty program, holders of its branded bank card or these touring on a enterprise fare will likely be exempt from the fees.
Southwest’s charge are aligned with different carriers’ costs. Delta Air Strains, American Airways and United Airways all cost between $35 to $40 for the primary checked bag. Others, like JetBlue Airways and Frontier Airways, cost totally different charges relying on varied components together with if it’s bought on-line or departure date.
Southwest has at all times provided free checked baggage for the reason that airline began about 60 years in the past and stored the coverage in place when its opponents beginning including and rising charges. In actual fact, the provider has trademarked its “baggage fly free” slogan, which has been a key a part of its promoting.
Including these charges will seemingly immediately enhance its backside line as a result of Southwest has two to 3 instances as many checked baggage as different airways.
Regardless of not charging for the primary two checked baggage, Southwest collected $83 million in baggage charges in 2024, based on Division of Transportation statistics. (Southwest fees $150 for a 3rd checked bag and as much as $200 for chubby baggage amongst different charges).
Nonetheless, that may be a fraction of the luggage charges collected by different airways, with American amassing $1.5 billion in 2024, whereas United pulled in $1.3 billion and Delta garnering $1 billion.
Southwest has been underneath stress to spice up profitability since activist investor Elliott Funding Administration took a $1.9 billion stake within the provider final 12 months. It has already introduced that it’s ditching its open-seat coverage in 2026 and retrofitting its planes with seats which have further legroom for a further cost.
Southwest stated clients have been clamoring for these adjustments. When folks swap to a competitor from Southwest, the corporate stated the highest purpose passengers cite is open seating. However the change may also assist the corporate cost some passengers extra for his or her tickets.
The airline has additionally modified the best way it sells tickets. Historically it solely offered them on Southwest’s web site, however lately began promote them on Expedia to draw extra clients.
Additionally starting Wednesday, Southwest will begin promoting “primary economic system” fares, that are low-priced tickets however with tons of restrictions. It’s a ticket sort that’s changing its well-known “Wanna Get Away” fare and is changing into more and more frequent amongst bigger carriers to compete towards low fares provided by price range airways.