Southwest Airlines recently announced a major change to its long-standing baggage policy. Starting May 28, the airline will no longer offer its famous “bags fly free” perk for all passengers. This decision marks a significant shift in Southwest’s approach, which had previously set the airline apart from its competitors.
Under the new policy, only elite-tier Rapid Rewards A-List Preferred members or passengers who purchase a Business Select Fare can check two bags for free. Additionally, those with a Rapid Rewards Credit Card will be allowed one free checked bag. Passengers without these memberships or fare types must pay for their first and second checked bags. Southwest has yet to reveal the exact cost, but it assured customers that the charges will align with industry standards.
Industry experts have raised concerns about the potential impact on Southwest’s customer loyalty. Henry Harteveldt, an airline analyst at Atmosphere Research Group, warned, “This is how you destroy a brand. When 97% of your customers say they fly Southwest because of its baggage policy, changing it could alienate nearly all of them.” He cautioned that this move could push Southwest into a financial decline, arguing that the airline risks becoming “just another airline.”
Despite these concerns, Southwest’s CEO Bob Jordan defended the policy change. “We understand this is a significant shift for our customers,” Jordan said. “However, it’s necessary for the airline to remain competitive and ensure long-term success.” Jordan believes that adjusting the baggage policy will help the airline maintain its edge in a competitive industry.
Southwest also announced changes to its Rapid Rewards loyalty program. Customers will earn more points on Business Select fares, while the airline will award fewer points for lower-cost tickets. Additionally, redemption rates will now vary depending on flight demand. The airline will introduce a new Basic fare to appeal to budget-conscious travelers who prioritize low-cost fares above all else.
These initiatives, according to Jordan, aim to help Southwest “return to profitability and adapt to what our customers want.” The airline’s new policies should support long-term success and align with evolving consumer preferences.
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