Latest news with #baggagefees
Skift
6 days ago
- Business
- Skift
The AI Assistant Race, Southwest's New Promise and Booking.com Revelations
For today's pod we look at Southwest's break with the past, the AI travel assistant race, and a brief history of Skift Daily Briefing Podcast Listen to the day's top travel stories in under four minutes every weekday. Listen to the day's top travel stories in under four minutes every weekday. Skift Travel Podcasts Good morning from Skift. It's Wednesday, May 28. Here's what you need to know about the business of travel today. Tuesday was the final day that flyers on Southwest Airlines were able to check bags for free. Airlines Reporter Meghna Maharishi examines the end of Southwest's most iconic perk and other major changes at the carrier. Southwest is now charging customers $35 for their first checked-in bag and $45 for the second. Maharishi notes the baggage fees apply to those flying basic economy, along with Southwest's Wanna Get Away Plus and Anytime fares. In addition, Southwest expects to start operating flights with assigned seats next year and will also start charging seat selection fees. Southwest executives have argued those changes are necessary for the carrier to remain competitive and shore up its profitability. Listen to This Podcast Apple Podcasts | Spotify | Youtube | RSS Next, OpenAI is establishing its own device company. Travel Technology Reporter Justin Dawes explains what that development could mean in the race to create the ultimate travel assistant. Dawes notes AI assistants could be the main way users purchase travel. Although Apple and Google are both taking steps toward that vision, it's tougher to overhaul an established suite of products. Dawes adds that OpenAI has an opportunity to fully reimagine how devices operate, built from the ground up with AI at the center. OpenAI has said it's planning a 'family of products,' and the company aims to reveal more details next year. Finally, Executive Editor Dennis Schaal delves into a book published four years ago that revealed details about the history of from its founding in Amsterdam in 1996. Three Dutch investigative journalists wrote the 2021 book 'The Machine,' which documents the tensions between the American and Dutch employees, and then between the Dutch and the Brits; takes you behind closed doors where one CEO gets fired and another is forced to resign; and discusses local backlash and strategic decisions. "The Machine" also shows execs' resistance to cooperating with other Booking Holdings brands. Until Glenn Fogel took over in 2019, there had been little sharing of data, resources or supply out of fear that it would dilute the brand and slow growth.
CNN
6 days ago
- Business
- CNN
5 things to know for May 28: Gaza, Immigration, DOGE, Harvard, SpaceX
Remember when Southwest Airlines' policy was 'bags fly free?' Those days are now over. On flights booked today and going forward, the carrier will charge travelers $35 for checking one bag, $45 for a second and $150 for a third checked bag. Overweight luggage will require paying up to $200 in fees. Here's what else you need to know to Get Up to Speed and On with Your Day. Get '5 Things' in your inbox If your day doesn't start until you're up to speed on the latest headlines, then let us introduce you to your new favorite morning fix. Sign up here for the '5 Things' newsletter. It's been 600 days since Hamas launched a surprise attack on Israel, killing more than 1,200 people and kidnapping 250 others. Since then, the militant group has released some of the hostages, but continued to fire rockets at Israel. Israel has responded by negotiating for the release of hostages, bombing much of Gaza and killing more than 53,000 people. In recent months, Israel has also halted access to humanitarian aid, which has pushed the enclave's population of more than 2 million Palestinians towards famine. Although access to aid resumed this week, chaos broke out at a distribution site in southern Gaza on Tuesday as thousands of desperate Palestinians arrived to receive food from a controversial new US and Israel-backed aid distribution program. Jake Wood, the head of the Gaza Humanitarian Foundation, resigned on Sunday, saying, 'it is not possible to implement this plan while also strictly adhering to the humanitarian principles of humanity, neutrality, impartiality, and independence, which I will not abandon.' President Donald Trump asked the Supreme Court on Tuesday to make it easier for his administration to deport people to countries where they don't hold citizenship. The policy, which was adopted soon after Trump returned to office, allowed the Department of Homeland Security to send immigrants to nations other than their home country without first notifying them or giving them a chance to claim a risk of persecution, torture or death in that third-party country. When a group of immigrants facing deportation to war-torn South Sudan sued, a federal judge blocked the US from deporting them unless they received written notice and had the chance to demonstrate a credible fear of persecution or torture there. The judge later said the administration violated his court order when it attempted to send several detainees of various nationalities to South Sudan. A federal judge ruled in the Trump administration's favor on Tuesday, saying the Department of Government Efficiency can access sensitive Treasury Department systems that contain private information about millions of Americans. A coalition of 19 states filed the lawsuit earlier this year to block DOGE from accessing the payment systems. In her latest ruling, US District Judge Jeannette Vargas said she would allow the Elon Musk-backed team at Treasury to access systems that control trillions of dollars of payments because the administration had created a process to train the DOGE staffers and prevent improper disclosures of private data. Earlier this year, DOGE staffers attempted to use the Treasury payment systems to shut down payments for programs they didn't believe should be funded. In its latest salvo against Harvard University, the White House has directed federal agencies to cancel all remaining contracts with the Ivy League school, two senior Trump administration officials said. Such a move would cost the university about $100 million. That's on top of the $2.65 billion already cut from Harvard after the administration demanded the school change its hiring and admission requirements, eliminate diversity, equity and inclusion programs and alter rules for on-campus protests. The school resisted those orders and filed a lawsuit claiming the government's actions violate the First Amendment. Last week, the administration tried to halt Harvard's ability to enroll foreign students, but a federal judge put that on hold. And on Tuesday, the State Department instructed US embassies and consulates around the world to pause new student visa appointments. While conducting the ninth uncrewed test flight of its Starship megarocket, SpaceX lost control of the spacecraft, which likely disintegrated over the Indian Ocean. The company was attempting to reuse a Super Heavy rocket booster that was previously flown and recaptured after a launch in January. The company wants to recover, refurbish and reuse as much of a rocket as possible to save money on future missions. Although Starship made it farther into its flight path during Flight 9 than in previous tests, it was not able to accomplish key objectives, such as deploying the test satellites it was carrying or reigniting engines upon reentry. The last two test missions — Flight 7 in January and Flight 8 in March — ended in explosive failures. Mary Lou Retton arrestedPolice in her West Virginia hometown took the 57-year-old gymnastics icon into custody earlier this month on suspicion of driving under the influence. Harry Potter TV show casts its starsHBO has finally found a trio of young actors to play Harry Potter, Hermione Granger and Ron Weasley in its upcoming series about the magical world of witchcraft and wizardry. (HBO, like CNN, is owned by Warner Bros. Discovery.) CosMc's to closeMcDonald's is planning to shutter all five of its beverage-focused spinoff locations in June. However, some of the customizable drinks will stick around. There's a fungus among usAs the climate crisis intensifies, researchers say Aspergillus, a common group of infection-causing fungi, will spread to new regions of the planet. Stop stealing the stones, folksA city in Belgium is asking tourists not to take a piece of its UNESCO-recognized medieval streets home with them. Rock guitarist/producer Rick Derringer diesDuring his six-decade music career, Derringer released the hit singles 'Hang On Sloopy' with his band The McCoys, and 'Rock and Roll, Hoochie Koo' from his solo album 'All American Boy.' He also worked with numerous artists — including Ringo Starr, Steely Dan, B.B. King and Barbra Streisand — and produced 'Weird Al' Yankovic's first six albums. 100That's how many hours climate and weather scientists plan to livestream presentations to protest the Trump administration's cuts to NOAA, NASA and the Department of Energy, as well as research funding to academia. The livestream marathon, which is billed as nonpartisan, begins today at 1 p.m. ET. 'I was disappointed to see the massive spending bill, frankly, which increases the budget deficit, not just decreases it, and undermines the work that the DOGE team is doing. I think a bill can be big or it can be beautiful, but I don't know if it can be both.' — Elon Musk on President Trump's sweeping tax and spending cuts package. Check your local forecast here>>> Joe Jackson's 6-year-old son William suffers from Duchenne muscular dystrophy. There is a potential treatment available, but it costs $2.2 million. So, Jackson set out to raise those funds by rowing nonstop for 31 hours.
The Independent
6 days ago
- Business
- The Independent
Airlines raked in over $7B in revenue thanks to check-in bag fees
U.S. airlines collected a staggering $7.27 billion in checked baggage fees last year, marking a new industry record, according to recent federal data. The total represents an increase from $7.07 billion in 2023, marking a continuation of the post-covid-19 pandemic surge in baggage fee revenue, according to figures from the Bureau of Transportation Statistics last updated in May. The 13 airlines included in the data are Alaska Airlines, Allegiant Air, American Airlines, Breeze Airways, Delta Air Lines, Frontier Airlines, Hawaiian Airlines, JetBlue, Silver Airways, Southwest Airlines, Spirit Airlines, Sun Country Airlines and United Airlines. American, Delta and United, the three largest airlines, each generated more than $1 billion in checked bag fees in 2024, continuing a consistent year-over-year increase in luggage revenue since the sharp decline caused by the pandemic in 2020. Ancillary fees, such as checked bag charges, have become a key profit source for airlines, with revenue increasing from $5.3 billion in 2021 to over $6.7 billion in 2022. The figures signal a complete rebound from the covid-19 pandemic's impact on air travel, when total checked bag revenue fell sharply to $2.84 billion in 2020. For comparison, the industry had generated $5.76 billion in 2019, before the global travel slowdown. Southwest Airlines is now trying to cash in on the checked bag revenues, officially ending its long-standing "Bags Fly Free" policy, a hallmark of its customer-friendly approach for over five decades. Effective Wednesday, passengers booking flights will now be charged $35 for the first checked bag and $45 for the second. However, Rapid Rewards loyalty program members, business class ticket holders, and Southwest credit cardholders will continue to enjoy complimentary checked bags. Southwest projects the new baggage fees could generate around $1.5 billion in annual revenue. The previously no-frills airline is also implementing other modifications, including the introduction of assigned seating for a fee, replacing its former open seating system. Southwest also started enforcing a rule Wednesday that requires passengers to use their portable chargers and batteries in plain sight, citing safety concerns after multiple overheating incidents.
CNN
7 days ago
- Business
- CNN
5 things to know for May 28: Gaza, Immigration, DOGE, Harvard, SpaceX
Remember when Southwest Airlines' policy was 'bags fly free?' Those days are now over. On flights booked today and going forward, the carrier will charge travelers $35 for checking one bag, $45 for a second and $150 for a third checked bag. Overweight luggage will require paying up to $200 in fees. Here's what else you need to know to Get Up to Speed and On with Your Day. Get '5 Things' in your inbox If your day doesn't start until you're up to speed on the latest headlines, then let us introduce you to your new favorite morning fix. Sign up here for the '5 Things' newsletter. It's been 600 days since Hamas launched a surprise attack on Israel, killing more than 1,200 people and kidnapping 250 others. Since then, the militant group has released some of the hostages, but continued to fire rockets at Israel. Israel has responded by negotiating for the release of hostages, bombing much of Gaza and killing more than 53,000 people. In recent months, Israel has also halted access to humanitarian aid, which has pushed the enclave's population of more than 2 million Palestinians towards famine. Although access to aid resumed this week, chaos broke out at a distribution site in southern Gaza on Tuesday as thousands of desperate Palestinians arrived to receive food from a controversial new US and Israel-backed aid distribution program. Jake Wood, the head of the Gaza Humanitarian Foundation, resigned on Sunday, saying, 'it is not possible to implement this plan while also strictly adhering to the humanitarian principles of humanity, neutrality, impartiality, and independence, which I will not abandon.' President Donald Trump asked the Supreme Court on Tuesday to make it easier for his administration to deport people to countries where they don't hold citizenship. The policy, which was adopted soon after Trump returned to office, allowed the Department of Homeland Security to send immigrants to nations other than their home country without first notifying them or giving them a chance to claim a risk of persecution, torture or death in that third-party country. When a group of immigrants facing deportation to war-torn South Sudan sued, a federal judge blocked the US from deporting them unless they received written notice and had the chance to demonstrate a credible fear of persecution or torture there. The judge later said the administration violated his court order when it attempted to send several detainees of various nationalities to South Sudan. A federal judge ruled in the Trump administration's favor on Tuesday, saying the Department of Government Efficiency can access sensitive Treasury Department systems that contain private information about millions of Americans. A coalition of 19 states filed the lawsuit earlier this year to block DOGE from accessing the payment systems. In her latest ruling, US District Judge Jeannette Vargas said she would allow the Elon Musk-backed team at Treasury to access systems that control trillions of dollars of payments because the administration had created a process to train the DOGE staffers and prevent improper disclosures of private data. Earlier this year, DOGE staffers attempted to use the Treasury payment systems to shut down payments for programs they didn't believe should be funded. In its latest salvo against Harvard University, the White House has directed federal agencies to cancel all remaining contracts with the Ivy League school, two senior Trump administration officials said. Such a move would cost the university about $100 million. That's on top of the $2.65 billion already cut from Harvard after the administration demanded the school change its hiring and admission requirements, eliminate diversity, equity and inclusion programs and alter rules for on-campus protests. The school resisted those orders and filed a lawsuit claiming the government's actions violate the First Amendment. Last week, the administration tried to halt Harvard's ability to enroll foreign students, but a federal judge put that on hold. And on Tuesday, the State Department instructed US embassies and consulates around the world to pause new student visa appointments. While conducting the ninth uncrewed test flight of its Starship megarocket, SpaceX lost control of the spacecraft, which likely disintegrated over the Indian Ocean. The company was attempting to reuse a Super Heavy rocket booster that was previously flown and recaptured after a launch in January. The company wants to recover, refurbish and reuse as much of a rocket as possible to save money on future missions. Although Starship made it farther into its flight path during Flight 9 than in previous tests, it was not able to accomplish key objectives, such as deploying the test satellites it was carrying or reigniting engines upon reentry. The last two test missions — Flight 7 in January and Flight 8 in March — ended in explosive failures. Mary Lou Retton arrestedPolice in her West Virginia hometown took the 57-year-old gymnastics icon into custody earlier this month on suspicion of driving under the influence. Harry Potter TV show casts its starsHBO has finally found a trio of young actors to play Harry Potter, Hermione Granger and Ron Weasley in its upcoming series about the magical world of witchcraft and wizardry. (HBO, like CNN, is owned by Warner Bros. Discovery.) CosMc's to closeMcDonald's is planning to shutter all five of its beverage-focused spinoff locations in June. However, some of the customizable drinks will stick around. There's a fungus among usAs the climate crisis intensifies, researchers say Aspergillus, a common group of infection-causing fungi, will spread to new regions of the planet. Stop stealing the stones, folksA city in Belgium is asking tourists not to take a piece of its UNESCO-recognized medieval streets home with them. Rock guitarist/producer Rick Derringer diesDuring his six-decade music career, Derringer released the hit singles 'Hang On Sloopy' with his band The McCoys, and 'Rock and Roll, Hoochie Koo' from his solo album 'All American Boy.' He also worked with numerous artists — including Ringo Starr, Steely Dan, B.B. King and Barbra Streisand — and produced 'Weird Al' Yankovic's first six albums. 100That's how many hours climate and weather scientists plan to livestream presentations to protest the Trump administration's cuts to NOAA, NASA and the Department of Energy, as well as research funding to academia. The livestream marathon, which is billed as nonpartisan, begins today at 1 p.m. ET. 'I was disappointed to see the massive spending bill, frankly, which increases the budget deficit, not just decreases it, and undermines the work that the DOGE team is doing. I think a bill can be big or it can be beautiful, but I don't know if it can be both.' — Elon Musk on President Trump's sweeping tax and spending cuts package. Check your local forecast here>>> Joe Jackson's 6-year-old son William suffers from Duchenne muscular dystrophy. There is a potential treatment available, but it costs $2.2 million. So, Jackson set out to raise those funds by rowing nonstop for 31 hours.
Daily Mail
7 days ago
- Business
- Daily Mail
Southwest reveals new cost of checked luggage
By Southwest Airlines will soon be charging travelers $35 for one checked bag and $45 for two, bringing an end to the company's free baggage policy . The move will take effect tomorrow months after the airline confirmed it would end 'bags fly free' policy by charging some customers to help boost earnings. Southwest was the only major US carrier that allowed customers to check in two bags at no cost. The airline said it will continue to offer two free checked bags to loyal customers with the A-List Preferred status and to passengers that pay the most premium fare. Customers with the lower loyalty status, A-List, will get one free checked bag. The carrier will also credit one checked bag for passengers who hold its co-branded credit card. Southwest withdrew its financial forecast for the year over uncertainties from President Donald Trump's trade war. Following the price announcement, fliers expressed their fury and annoyance over the changes in a Reddit post created by a former Southwest employee. 'Good bye Southwest. Audios. Hasta la vista. That means good bye,' a flier wrote. 'I'm A-List Preferred and this is sickening to me. 'Plus imagine how many extra carry-on bags are gonna be tried to be taken on the plane now, slowing down boarding considerably,' another person responded. Members of the airline's 'A-List' and 'A-List Prefered' programs will still be able to enjoy some free bag perks. The airline, which has built a brand offering a no-frills, customer-focused experiences, has also announced other changes. Southwest is launching a basic economy fare to remain competitive with other major airlines. It's also launching dynamic pricing models for its rewards program, tracking how much money repeat customers spend on tickets instead of miles traveled. 'We have tremendous opportunity to meet current and future customer needs,' Bob Jordan, the brand's CEO, said. 'We will do all this while remaining focused on what's made us strong — our People and the authentic, friendly, and award-winning customer service only they can provide.' Southwest's announcement comes amid increased pressure from activist investors , particularly Elliott Investment Management who want to push it to cut costs and boost profits. It also laid off 1,750 corporate jobs as part of a restructuring effort. The mass layoff was the first in the company's history. The end of free bags comes after cuts to routes last year — plus the axing of other perks. In September, Southwest cut almost a third of its flights to and from Atlanta in a blow to the city and staff based there. In September, Southwest also said it is axing its popular open seating policy after half a century. Instead, it will soon charge passengers a fee to pick a seat. The end of the iconic 'bags fly free' perk was first mooted last year, but bosses denied the rumors. Southwest, which once boasted a record 47 consecutive years of profit prior to the pandemic, is struggling to regain sustained profitability. A report out earlier this year showed how airlines including Delta, United and American pocketed a staggering $33.3 billion from just baggage fees last year - a sharp 15 percent rise from $29 billion in 2022. This sum is solely made up of fees from larger carry-on bags, standard checked baggage fees, and fines for overweight or extra large checked bags and accounted for 4.1 percent of global airline revenue last year. Meanwhile, in January there was backlash against Southwest for letting able-bodied flyers use wheelchair assistance to board early.
