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Yahoo
4 days ago
- Business
- Yahoo
Southwest Airlines Breaks Silence on Major Problem After Ending Free Bags
Just before the start of summer, Southwest Airlines instituted its new bag policy, which was previously announced in March. "For reservations booked and ticketed or changed on or after May 28, 2025, checked baggage fees will apply. We will offer two free checked bags to our Rapid Rewards A-List Preferred Members and Business Select Customers, and one free checked bag to A-List Members and other select Customers. Southwest will credit the first checked bag for Rapid Rewards Credit Cardmembers," the airline said in a statement at the time. Major Problem Emerges for Southwest After Ending Free Bags Immediately after ending free bags, Southwest ran into a problem of its own making. With travelers being forced to shell out at least $35 per checked bag, they instead began bringing a carry-on. "We're seeing Southwest Airlines gate agents require checking bags early, when there's still plenty of overhead bin space left. They've given up the advantage of not having to gate check bags, right at the same time they're facing a lot of pressure to reduce the amount of time it takes to board so that planes spend less time on the ground and more time in the air generating revenue," travel insider View From the Wing wrote. "One of the unintended consequences of customer-unfriendly changes at Southwest is that now there's a good chance you won't be able to bring your carry-on bag onboard. And there's a good chance you'll have your carry-on confiscated even when there's still space for it." Southwest Breaks Silence on Gate-Checking Bags Earlier this month during its recent earnings call, Chief Operating Officer Andrew M. Watterson revealed Southwest used a "machine learning tool" that actually "predicts the number of gate-check bags needed for each flight." Watterson confirmed Southwest is actively gate-checking bags before it needs to in order to keep travelers flowing onto the aircraft instead of getting to the back of the plane and learning there's no more Airlines Breaks Silence on Major Problem After Ending Free Bags first appeared on Men's Journal on Aug 10, 2025 Solve the daily Crossword
29-07-2025
- Business
Southwest begins booking assigned seats for future flights: What to know
What to know about new fare bundles and boarding. 0:53 For the first time in 53 years, Southwest Airlines is officially selling assigned seats to passengers with a variety of new seat preferences for flights, starting in January 2026. The new assigned seating options, which the Dallas-based carrier first announced last summer, is Southwest's attempt to offer customers more flexibility when flying with options including extra legroom seats, preferred seats and standard seats, while helping bolster the business' bottom line and stay competitive across the industry. What to know about Southwest Airlines assigned seat bookings, new fare types In a departure from the iconic open seating policy, as well as its two free checked bags offer and unique boarding process, Southwest opened its bookings on Tuesday for assigned seats. Now, at the time of booking, Southwest customers can choose from fare bundles, some of which offer seat selection, as well as access to the different seat types. Here's a snapshot of what's new. The new fare products include Choice Extra, Choice Preferred and Choice -- formerly called Business Select, Anytime and Wanna Get Away Plus -- along with the previously announced, Wanna Get Away fare class that's now called Basic. Choice Extra, the top fare bundle, includes an extra legroom seat, Choice Preferred includes a new preferred seat, and Choice includes a standard seat to be selected while booking. See the full chart of fare comparisons from Southwest here. Customers can also opt to purchase a seat upgrade to elevate their travel experience. Rapid Rewards Credit Card members, depending on which card they hold, can select a seat at booking or within 48 hours of departure, regardless of which fare they purchase, including Basic fares. A-List and A-List Preferred Customers will have access to select a seat at booking regardless of the fare they purchase, including Basic fares. How will Southwest board flights with new assigned seats The airline will also start a new group-based boarding process on Jan. 27, 2026, which Southwest said is "optimized for assigned seating and will prioritize Customers into groups based on seat location, beginning with Extra Legroom seats in boarding Groups 1-2." Premium fares, Tier Members and Credit Cardmembers will board earlier in the process.
Business Insider
08-07-2025
- Business
- Business Insider
Southwest Airlines Stock (LUV) Jumps as CEO Defends Baggage Changes
Southwest Airlines (LUV) stock jumped on Monday after the airline company provided reasons for its updated bag check policies. CEO Bob Jordan claimed that the update, which went into effect on May 28, was 'really about choice.' Don't Miss TipRanks' Half-Year Sale Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. According to Jordan, ditching the two free checked bags in favor of fees for any checked bags was about meeting the 'customer's needs and wants' and that customers 'want a lot of choice.' Under the new policy, a checked bag costs $35 to $40 for the first and $45 to $50 for the second. Of course, there are ways to get around this. A-List passengers and Southwest Airlines' credit card holders can still check one bag for free. Additionally, Business Select and Rapid Rewards A-List Preferred flyers can check two bags for free. Southwest Airlines Stock Movement Today Southwest Airlines stock was up 0.21% on Monday, extending a 2.77% rally year-to-date and a 24.61% increase over the past 12 months. While customers may not be pleased with the baggage changes, investors are. That makes sense, as the baggage fees are expected to bring in $4 billion in profit for the airline. Southwest Airlines could benefit from these products, as its earnings have been weighed down recently by its efforts to attract budget-minded customers. The changes to its baggage fees also line up with industry standards, providing it more revenue without putting too much pressure on passengers. Is Southwest Airlines Stock a Buy, Sell, or Hold? Turning to Wall Street, the analysts' consensus rating for Southwest Airlines is Hold, based on five Buy, four Hold, and four Sell ratings over the past three months. With that comes an average LUV stock price target of $31.08, representing a potential 8.8% downside for the shares.
Time of India
07-07-2025
- Business
- Time of India
Southwest Airlines policy update: Airline enters new era with bag fees and other changes. Check rates
Southwest Airlines has announced a lot of changes in the past few months with the latest one in March where it said it would end free checked baggage for most travelers. In March, Southwest announced that it would begin charging for checked bags, a move that brought it in line with most of its competitors. Long praised for its "Bags Fly Free" policy, Southwest Airlines' revised policy took effect on May 28, requiring the majority of passengers to pay for their first and second checked bags. Southwest Airlines' CEO Bob Jordan is doubling down on the company's controversial changes ending unassigned seating and free bags for most customers. According to Travel Weekly, the carrier, which long made its bags-fly-free policy a centerpiece of its commercial offering, will charge $35 for the first checked bag and $45 for a second bag. The fees will apply to flights booked or voluntarily changed on or after May 28. Play Video Play Skip Backward Skip Forward Mute Current Time 0:00 / Duration 0:00 Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions and subtitles off , selected Audio Track Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. 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Story To Hear ALSO READ: Pearl Jam drummer Matt Cameron announces heartbreaking departure after 27 'fantastic years', leaves fans stunned Under the new policy, holders of a Southwest co-branded credit card and flyers with Rapid Rewards A-list status will be entitled to one free checked bag. Travelers who book Southwest's top-level fare, Business Select, will continue to get two free checked bags, as will those with Rapid Reward A-list Preferred status. Live Events Why is Southwest Airlines changing policy? CEO Bob Jordan has repeatedly defended the changes and he did so again in a new interview with the New York Times on July 6. He explained that the change marks a major shift as the airline seeks new revenue and a wider customer base. Jordan explained the reasoning behind both the changes and their timing. That included addressing the elephant in the room, namely, the speed at which those changes were being rolled out. '[O]ther airlines went through these changes over a decade or more,' Jordan said. 'There is a bit of catch-up here because we're moving to that world, but in months, not a decade.' The CEO described the new baggage policy change as part of a broader transformation designed to meet evolving traveler expectations and improve Southwest's profitability. It is expected to net the airline $4 billion in profit, the report said. ALSO READ: Big revelation in Texas tragedy: Was 'flash flood' warning system scrapped before 27 died at Camp Mystic? "Customers today want a lot of choice, especially coming out of the pandemic. The customer's needs and wants are just different. The move to bag fees is really about choice," Jordan said in an interview with The New York Times. Jordan added: "Change is hard, and change is emotional. The needs of customers, employees and investors don't have to be at odds." He said that the changes were not solely driven by investor pressure but reflected broader industry trends and consumer behavior—almost all other U.S. airlines and many others around the world charge for taking bags. "There is a bit of catch-up here because we're moving to that world, but in months, not a decade," he said. Asked if cabin crews were excited about the addition of assigned seating, he said, "If in the open-seating world a family gets on and they can't sit together, the flight attendant is having to police that in the cabin,' he told the Times. 'Our open-seat boarding can cause a lot of pre-boards, and our agents are having to police that.' ALSO READ: Novak Djokovic's wife Jelena reacts to historic Wimbledon victory without using a word. Who is she? When asked about whether the changes reward frequent customers and potentially leave out those who don't fly Southwest as much, Jordan said the airline is "not abandoning anybody." "You are going to get great fares on Southwest Airlines, period," he continued. "My whole point is there's more coming to the strategy as we keep evolving, but it's all about staying true to who we are—best people, best hospitality, best service—while stretching the model to meet the needs of our customers." Why is this significant? Southwest Airlines, once known for standing out as the only major U.S. carrier offering two free checked bags to all passengers, has changed course. Under its new policy, Southwest now aligns with rivals like American, Delta, and United, which charge $35–$40 for the first checked bag and $45–$50 for the second. A Southwest spokesperson told Newsweek: "Southwest will be charging $35 for a first checked bag and $45 for a second checked bag (weight and size limits apply) for flights booked or voluntarily changed on or after May 28." However, Southwest still offers some perks: Business Select travelers and Rapid Rewards A-List Preferred members can continue to check two bags at no cost. A-List members and Southwest credit card holders will be allowed one free checked bag.
Newsweek
07-07-2025
- Business
- Newsweek
Southwest Airlines Is Changing Its Baggage Policy—Here's Why
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Southwest Airlines, long praised for its "Bags Fly Free" policy, announced in March it would end free checked baggage for most travelers. The revised policy took effect on May 28, requiring the majority of passengers to pay for their first and second checked bags. CEO Bob Jordan has been explaining that the change marks a major shift as the airline seeks new revenue and a wider customer base. Why the Policy Changed Jordan described the new baggage policy as part of a broader transformation designed to meet evolving traveler expectations and improve Southwest's profitability. It is expected to net the airline $4 billion in profit. "Customers today want a lot of choice, especially coming out of the pandemic. The customer's needs and wants are just different. The move to bag fees is really about choice," Jordan said in an interview with The New York Times. Jordan added: "Change is hard, and change is emotional. The needs of customers, employees and investors don't have to be at odds." He said that the changes were not solely driven by investor pressure but reflected broader industry trends and consumer behavior—almost all other U.S. airlines and many others around the world charge for taking bags. "There is a bit of catch-up here because we're moving to that world, but in months, not a decade," he said. When asked about whether the changes reward frequent customers and potentially leave out those who don't fly Southwest as much, Jordan said the airline is "not abandoning anybody." "You are going to get great fares on Southwest Airlines, period," he continued. "My whole point is there's more coming to the strategy as we keep evolving, but it's all about staying true to who we are—best people, best hospitality, best service—while stretching the model to meet the needs of our customers." Southwest Boeing 737-800 airplane at Dallas Love Field airport (DAL) in the United States on November 9, 2022. Southwest Boeing 737-800 airplane at Dallas Love Field airport (DAL) in the United States on November 9, 2022. Boarding1Now/GETTY How Southwest Compares to Competitors Previously, Southwest was unique as the only major U.S. airline offering two free checked bags for all passengers. Now, its new policy brings it in line with competitors such as American, Delta, and United Airlines, each charging between $35 and $40 for a first checked bag and $45 to $50 for a second. A Southwest spokesperson told Newsweek: "Southwest will be charging $35 for a first checked bag and $45 for a second checked bag (weight and size limits apply) for flights booked or voluntarily changed on or after May 28." Southwest's updated policy does retain some benefits for certain travelers; Business Select flyers and Rapid Rewards A-List Preferred members may continue to check two bags for free, while A-List status holders and Southwest credit card users can check one bag at no extra cost. What Happens Next The airline is expected to continue adapting its business model, with further updates to fare classes and rewards programs on the horizon.
