Latest news with #RapidRewardsA-ListPreferred
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.
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.
Yahoo
28-05-2025
- Business
- Yahoo
Southwest Airlines Finally Reveals How Much Baggage Fee Will Cost
In March 2025, Southwest Airlines announced the controversial decision to ends its decades-old "two bags fly free" policy for checked luggage. "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. After announcing the move two months ago, Southwest Airlines chose not to announce how much the new bag fee would cost - until now. On May 26, CNBC reported the airline will start charging $35 for the first checked back and $45 for the second. While most travelers will have to pay, Southwest is still offering its two free bag policy for Rapid Rewards A-List Preferred Members and passengers traveling in Top-tier fare class, formerly Business Select. A-List Members and Southwest credit card holders will also get one free checked bag. Passengers will be allowed one carry-on bag and one personal item per flight. Rules stipulate checked bags must weigh no more than 50 pounds and measure no more than 62 inches in total dimensions. In addition to bag fees, Southwest Airlines is also doing away with its normal boarding process. "These changes add to the initiatives already underway at Southwest, including the forthcoming implementation of assigned seating and extra legroom options and an initial industry-standard airline partnership with Icelandair that began on February 13, the same day the carrier's first-ever scheduled overnight redeye flights launched," the company Airlines Finally Reveals How Much Baggage Fee Will Cost first appeared on Men's Journal on May 27, 2025
CBS News
18-03-2025
- Business
- CBS News
Frontier offers free checked bag promotion to entice angry Southwest customers
Frontier Airlines is introducing a free checked bag promotion in an effort to poach former Southwest passengers frustrated by the airline's decision to ditch its longstanding "bags fly free" policy. Called "Your New Love," the limited-time deal includes a free carry-on plus a free checked bag with use of a promo code. Seat selection and flight changes are also free, according to Frontier. "We've always had heart," Frontier Airlines CEO Barry Biffle said in a statement Tuesday. "Some airlines are walking away from what travelers love, but we're running towards it. Think of this as the ultimate 'divorce your old airline' deal. If travelers show us the love, we'll make these perks permanent." The deal is valid for flights departing May 28 — the same day Southwest says it will start charging customers to check in their bags — through Aug. 18. To take advantage of the deal, bookings must be made by March 24, using the promo code FREEBAG. Biffle said that while the deal is temporary for now, it could become permanent if it proves to be a hit. Frontier's pitch to travelers comes days after Southwest announced it would start making customers pay for checked bags , ending its free checked bags policy for the first time in the airline's 54-year history. Beginning May 28, only Southwest's most elite Rapid Rewards A-List Preferred members and Business Select passengers will be able to check two bags for free. Frequent flyer A-List Members, Southwest-branded credit card holders and other select customers will be allowed one free checked bag. All other passengers will have to pay to check in one or more bags on flights booked on or after May 28, according to the carrier. Many Southwest loyalists lamented the move, which they say set the airline apart from its competition. "Why would we still fly Southwest, because now they're just going to be same as every other flight," Southwest customer Howie Baker told CBS Colorado . "So whichever one is going to be cheaper and first is the one that we'll choose." Budget airlines like Southwest and Frontier have struggled to appeal to customers following the pandemic, as consumer preferences shift toward more premium offerings.
Yahoo
14-03-2025
- Business
- Yahoo
Southwest Airlines slammed as ‘tone deaf' for social media joke
Let the lesson be learned, social media managers: There is a time and place for jokes. This apparently was not one of those times. Southwest Airlines has been catching heat for its recent policy reversal. 'Allowing bags to fly free' has been a marketing tool of the company for years, but as announced earlier this week, that will no longer be true for customers purchasing the lowest-priced plane tickets. The change begins on May 28. The airline will continue to offer two free checked bags to Rapid Rewards A-List Preferred Members as well as passengers flying on Business Select fares. One free checked bag will be allowed for A-List Members, while one checked bag will be credited for Rapid Rewards Credit Card members. It's not clear how much it'll cost to check bags. While customers reacted to the policy change, the Dallas-based airline took a shot at its hometown NBA team. 'It's not like we traded Luka,' an Instagram post from the Southwest Airlines account reads. That swipe is in reference to last month's shocking NBA trade between the Dallas Mavericks and the Los Angeles Lakers that sent superstar Luka Doncic to L.A. The trade, much like the new Southwest policy, was not well received by fans in the Dallas area. And now, the airline, which has also announced mass layoffs in the last month, is taking some punishment online. 'This is incredibly tone deaf,' a comment reads from Instagram user gkrisanic. 'I've been a loyal Southwest customer and a RR cardholder for years, but now I'm going to be exploring other options after all of these policy changes. There is really no reason to fly SW now, especially when I can find a more convenient direct flight on another airline. Super disappointed in y'all.' 'Taking a screenshot of this as it will be the thumbnail for the Harvard business review case study of destroying a brand and an entire company,' said user rappid_exposure. 'Air balling a joke like this after laying off [nearly 1,800] people is crazy,' said adamchernandez. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
