Latest news with #Southwest-branded
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.
CBS News
12-03-2025
- Business
- CBS News
Devoted Southwest flyer from Colorado upset about new bag policy: "They're just going to be same as every other flight"
Fly away free bags. A policy in existence for all Southwest Airlines passengers for over 50 years will soon be ended. Denver International Airport's second biggest carrier (behind United) is re-doing its bag policy, meaning the end of the popular "bags fly free" mantra for Southwest. It seems to be going over like a lead balloon with passengers a CBS Colorado news crew talked with at the airport Tuesday. "Why would will still fly Southwest, because now they're just going to be same as every other flight," said Howie Baker, a to-this-point devoted Southwest flyer from Thornton who said the policy made the airline stand out. "So whichever one is going to be cheaper and first is the one that we'll choose." Southwest is the nation's fourth largest airline. It has faced a lot of pressure from an activist investor who is urging the airline to up its financial performance. Southwest has struggled to track along with changing customer preferences post-pandemic. The pricing of individual options and bag fees has proliferated through the industry in recent years. Southwest had resisted. "What happened was that airlines decided that they wanted to charge for everything in order to become profitable. And guess what, it worked," said Darren Duber-Smith a marketing expert with Metropolitan State University of Denver. "I just don't think we have very much of a choice in the airline industry anymore. There're really only a handful of major carriers. The discount carriers are trying to merge with each other or going bankrupt," said Duber-Smith. "Their model really is antiquated," he said about Southwest. "It's parity. It's a commoditized industry," said Duber-Smith. So it's sort of back to where it was in the 60s and 50s when the government regulated everything. We really didn't have that many choices and we basically had the same experience every single time. Sad but true." Already devoted customers like Sandra Smith and her husband are re-thinking. "We travel frequently. And almost every time we do, we book Southwest," she said. "It will likely change." Starting May 28, only Southwest's most elite Rapid Rewards A-List Preferred members and passengers who book their top-tier Business Select fares will receive two free checked bags. Frequent flyer A-List Members, Southwest-branded credit card holders and other select customers will be allowed one checked bag. Others will have to pay for bags. Even those passengers who have bought tickets already will have to pay additional fees.
Yahoo
11-03-2025
- Business
- Yahoo
Southwest Waves Goodbye to "Bags Fly Free" Era
Southwest Airlines is abandoning one of its most distinctive features: free checked bags. The carrier announced Tuesday it will start charging for the first and second checked bag beginning May 28, ending a six-decade tradition that set it apart from competitors."We have tremendous opportunity to meet current and future customer needs, attract new customer segments we don't compete for today, and return to the levels of profitability that both we and our shareholders expect," said Bob Jordan, CEO of Southwest, in a press move marks a dramatic shift for an airline that built part of its identity around not nickel-and-diming passengers. Southwest even trademarked the "bags fly free" slogan, making it central to its marketing campaigns while competitors piled on position on bag fees has evolved rapidly. During an analyst call last year, he insisted the policy wasn't changing, noting that "after fare and schedule, bags fly free is cited as the number one issue in terms of why customers choose Southwest." As CNN reports, the airline will exempt certain customers from these new fees, including members of its A-List loyalty program, Southwest-branded credit card holders, and those traveling on business airline hasn't revealed specific pricing for the new fees, but the impact could be substantial. Despite not charging for the first two checked bags, Southwest still collected $73 million in baggage fees in 2023 and $62 million in the first nine months of 2024, according to Department of Transportation data. That's a fraction of what competitors earn—American Airlines collected $1.4 billion in 2023, United Airlines $1.2 billion, and Delta Air Lines $985 wasted no time capitalizing on the announcement. Delta CEO Ed Bastian said at an investors conference Tuesday that Southwest's decision could benefit rivals: "Clearly there are some customers who chose them because of that (bags fly free policy). Now clearly those customers are up for grabs." United CEO Scott Kirby was more direct: "It'll be good for everyone else. It's the slaying of a sacred cow. I view it as a big deal."The baggage fee announcement is just the latest in a series of changes since activist investor Elliott Investment Management took a $1.9 billion stake in Southwest last year. The airline is also introducing assigned seating, premium seats, and red-eye flights—all features of traditional carriers it once proudly stood apart month, Southwest cut 15% of its corporate workforce, eliminating 1,750 jobs in the first mass layoffs in company history. The company estimates these cuts will save $210 million this year and $300 million in shares jumped more than 6% in Tuesday trading following the announcement. Explore LA Every Weekend! Don't miss the top picks for things to do in Los Angeles. Subscribe to the Weekend Guide below or by clicking here.
CBS News
11-03-2025
- Business
- CBS News
Southwest Airlines to end free checked bags policy for first time in its 54-year history
Southwest Airlines boasts that its passengers' "bags fly free" — but not for long. Starting May 28 — just in time for the busy summer travel season — only Southwest's most elite Rapid Rewards A-List Preferred members and passengers who book their top-tier Business Select fares will receive two free checked bags. Frequent flyer A-List Members, Southwest-branded credit card holders and other select customers will be allowed one checked bag. Everyone else will be charged for their first and second checked bags on flights booked on or after May 28, the carrier says. "Just another airline"? It's a break with Southwest's 54 year history — one that could undermine customer loyalty to the carrier, according to experts. "This is how you destroy a brand. This is how you destroy customer preference. This is how you destroy loyalty. And this, I think, is going to send Southwest into a financial tailspin," airline industry analyst Henry Harteveldt, of Atmosphere Research Group, told CBS News senior transportation correspondent Kris Van Cleave. "Southwest, with these changes, becomes just another airline." Just last September, Southwest CEO Bob Jordan told Van Cleave bags would continue to fly without charge. "Bags will still fly free," Jordan said. "It's the third thing customers look for after fare and schedule: Bags fly free, on us. Ninety-seven percent are people who are aware of our policies. So it's a huge consumer advantage. So bags will absolutely fly free." But when pressed if they'd always fly free, he acknowledged, "Well, never say never. … It's like saying open seating would never change 20 years ago. Consumer preferences change, but from everything that we see, there's no reason to reconsider this at all, especially right now." "When 97% of your customers say they fly you because of your 'bags fly free' policy and you make dramatic changes to it, you are telling almost all of your customers, 'Your business doesn't matter to us anymore,'" Harteveldt said. "We are watching an airline self-destruct. This is the equivalent of deliberately sailing a ship into an iceberg." The cost of a checked bag hasn't been announced but airline sources say it will be competitive with other carriers. Mounting financial pressure The move comes as Southwest, the nation's fourth-largest airline, has been under intense pressure from an activist investor to improve its financial performance after struggling to keep pace with changing customer preferences post-pandemic. Southwest recently announced its first ever layoffs, launched its first redeye flights, and intends to end its long-running open seating policy next year. Instead, the airline will offer seat assignments and sell extra legroom seats for an additional fee. Also announced Tuesday are changes to Southwest's Rapid Rewards frequent flyer program — increasing the points flyers get for booking higher-priced Business Select fares while reducing the points earned on less expensive "Wanna Get Away" and "Wanna Get Away Plus" fares. The airline will also start dynamic or variable pricing for points redemption across higher- and lower demand flights. What's more, starting May 28, Southwest will add a heavily discounted basic economy fare class that will guarantee a flyer a seat on a plane but will likely come with restrictions similar to other carriers' basic economy offerings. In a video statement Tuesday morning, Jordan said the changes "will help us return to the levels of profitability we all expect, and to support our collective long term success. It's also about adapting to what our customers want. "Many things have changed post-Covid: the loss of short-haul demand, a rise in premium demand, and a change in customer preferences." Jordan said the goal is to secure Southwest's future. "We are more than the logo on our planes," he said. "Our DNA isn't open seating, or even bags fly free. It's a dedication to service." Harteveldt says, "More choice is always a good thing. More low fares are always a good thing. And Southwest is large enough that if they use their basic economy fares in the right way, and I believe they will, they may force other airlines to be more aggressive in their pricing." Southwest is the last major U.S. airline to offer a basic economy product, which carriers launched to compete with ultra-low cost airlines like Frontier and Spirit. While the offerings vary by airline, basic economy tickets often come without an advance seat assignment, tend to be in the last boarding group and may limit the number or size of carry-on luggage. Checked bags and other perks come with a cost. It's been a hit for airlines. United Airlines reported basic economy revenue jumped 20% last year. "Southwest Airlines remains committed to its core tenets — amazing people who deliver great hospitality to all Southwest customers, a strong network with the most nonstop flights within the U.S., and a loyalty program that gives real value to Rapid Rewards Members," the carrier said in a statement.
CBS News
11-03-2025
- Business
- CBS News
Southwest Airlines ending free checked bags policy for many passengers, for first time in its 54-year history
Southwest Airlines boasts that its passengers' "bags fly free" — but not for long. Starting May 28 — just in time for the busy summer travel season -- only Southwest's most elite Rapid Rewards A-List Preferred members and passengers who book their top tier Business Select fares will receive two free checked bags. Frequent flyer A-List Members, Southwest-branded credit card holders and other select customers will be allowed one checked bag. Everyone else will be charged for their first and second checked bags on flights booked on or after May 28, the carrier says. It's a break with Southwest's 54 year history. "This is how you destroy a brand. This is how you destroy customer preference. This is how you destroy loyalty. And this, I think, is going to send Southwest into a financial tailspin," airline industry analyst Henry Harteveldt, of Atmosphere Research Group, told CBS News senior transportation correspondent Kris Van Cleave. "Southwest, with these changes, becomes just another airline." Just last September, Southwest CEO Bob Jordan told Van Cleave bags would continue to fly without charge. "Bags will still fly free," Jordan said. "It's the third thing customers look for after fare and schedule: Bags fly free, on us. Ninety-seven percent are people who are aware of our policies. So it's a huge consumer advantage. So bags will absolutely fly free." But when pressed if they'd always fly free, he acknowledged, "Well, never say never. … It's like saying open seating would never change 20 years ago. Consumer preferences change, but from everything that we see, there's no reason to reconsider this at all, especially right now." "When 97% of your customers say they fly you because of your 'bags fly free' policy and you make dramatic changes to it, you are telling almost all of your customers, 'Your business doesn't matter to us anymore,'" Harteveldt said. "We are watching an airline self-destruct. This is the equivalent of deliberately sailing a ship into an iceberg." The cost of a checked bag hasn't been announced but airline sources say it will be competitive with other carriers. The move comes as Southwest, the nation's fourth largest airline, has been under intense pressure from an activist investor to improve its financial performance after struggling to keep pace with changing customer preferences post-pandemic. Southwest recently announced its first ever layoffs, launched its first redeye flights, and intends to end its long-running open seating policy next year. Instead, the airline will offer seat assignments and sell extra legroom seats for an additional fee. Also announced Tuesday are changes to Southwest's Rapid Rewards frequent flyer program -- increasing the points flyers get for booking higher-priced Business Select fares while reducing the points earned on less expensive "Wanna Get Away" and "Wanna Get Away Plus" fares. The airline will also start dynamic or variable pricing for points redemption across higher- and lower demand flights. What's more, starting May 28, Southwest will add a heavily discounted basic economy fare class that will guarantee a flyer a seat on a plane but will likely come with restrictions similar to other carriers' basic economy offerings. "More choice is always a good thing," Harteveldt says. "More low fares are always a good thing. And Southwest is large enough that if they use their basic economy fares in the right way, and I believe they will, they may force other airlines to be more aggressive in their pricing." Southwest is the last major US airline to offer a basic economy product, which carriers launched to compete with ultra-low cost airlines like Frontier and Spirit. While the offerings vary by airline, basic economy tickets often come without an advance seat assignment, tend to be in the last boarding group and may limit the number or size of carry-on luggage. Checked bags and other perks come with a cost. It's been a hit for airlines. United Airlines reported basic economy revenue jumped 20% last year. "Southwest Airlines remains committed to its core tenets — amazing people who deliver great hospitality to all Southwest customers, a strong network with the most nonstop flights within the U.S., and a loyalty program that gives real value to Rapid Rewards Members," the carrier said in a statement. But is the Southwest that people know? "Yes," Harteveldt said. "This change is just so unlike Southwest. And it really is something that I worry could be far more financially damaging to the airline than helpful."
