Latest news with #travelpolicy
Daily Mail
2 days ago
- Business
- Daily Mail
How Southwest's new baggage fee could backfire
The end of Southwest's much-loved free checked bags policy could have two unintended consequences. The budget airline, which announced it would be charging customers for their checked luggage earlier this year, could now face delayed departures due to longer check-in and gate lines. Gate-checking lines will also grow as Southwest planes have limited overhead locker room for carry-on bags, and will be unlikely to meet new demands. Southwest has the lowest cancellation rate among its US rivals so far this year and its on time rate is over 80 percent, according to aviation analytics firm Cirium. If the airline is unable to mitigate the knock-on effects of its new policy then fliers could see a significant reduction in timely departures just as the summer travel season kicks off. Checking passengers' bags as they board the plane is a time-consuming activity and may cause flight delays as the airline and its passengers get used to the new system. On the airline's smallest planes, there tend to be five or six carry-ons that need to be checked, Justin Jones, executive vice president of operations at Southwest, told the Wall Street Journal. But as bag fees go into effect, he predicts this could surge to 25. The airline has begun deploying new technology to speed up check-in and gate waiting times. This includes an AI 'Lobby Awareness Tool' that predicts airport wait times based on flight schedules and passenger-arrival patterns. This will help the airline know when to deploy extra employees to help deal with a bottleneck and minimize delays. Another tool is the Baggage Estimation Based on Passengers, or Bebop, which will help to predict how many carry-ons will have to be checked at the gate. 'It was a curve ball that we were thrown,' Jones previously told the Airlines Confidential podcast. 'We always carry more bags than anyone else out there,' Jones said. Indeed, customers have famously taken advantage of Southwest's generous policy to transport kitchen sinks and toilets across the country. 'We're going to need to do several things,' but 'we want to make sure the customer experience is still very high,' Jones told the podcast. 'So we're going to be extremely hesitant to go out and do heavy policing on bag size like some other carriers do.' However, the policy change 'will result in more gate checked bags and fees.' 'We're dependent on everything kind of flowing,' Jones said of Southwest's business model which relies on keeping aircraft in the skies rather than wasting time on the ground. Long-term Jones said the answer will be in the introduction of new planes to Southwest's fleet with more cabin bag capacity. Customers have criticized he new rules. 'The only reason people put up with no assigned seating was because they could check free bags. This is no better than a bus, now,' one wrote on Reddit. The fees are part of Southwest's efforts to boost its bottom line.
Daily Mail
3 days ago
- Business
- Daily Mail
Axing of Southwest's 'bags fly free' will backfire in two major ways: 'No better than a bus'
The end of Southwest's much-loved free checked bags policy could have two unintended consequences. The budget airline, which announced it would be charging customers for their checked luggage earlier this year, could now face delayed departures due to longer check-in and gate lines. Customers must now pay $35 for one bag and $45 for the second, after the new policy went in to effect on May 28. Southwest estimates a 30 percent drop in checked baggage volume and a surge in carry-on as hard-pressed consumers try to evade the fees. But experts point out two problems. Check-in lines will grow as fliers take time to pay for bags at the airport. Gate-checking lines will also grow as Southwest planes have limited overhead locker room for carry-on bags, and will be unlikely to meet new demands. Southwest has the lowest cancellation rate among its US rivals so far this year and its on time rate is over 80 percent, according to aviation analytics firm Cirium. If the airline is unable to mitigate the knock-on effects of its new policy then fliers could see a significant reduction in timely departures just as the summer travel season kicks off. Checking passengers' bags as they board the plane is a time-consuming activity and may cause flight delays as the airline and its passengers get used to the new system. On the airline's smallest planes, there tend to be five or six carry-ons that need to be checked, Justin Jones, executive vice president of operations at Southwest, told the Wall Street Journal But as bag fees go into effect, he predicts this could surge to 25. The airline has begun deploying new technology to speed up check-in and gate waiting times. This includes an AI 'Lobby Awareness Tool' that predicts airport wait times based on flight schedules and passenger-arrival patterns. This will help the airline know when to deploy extra employees to help deal with a bottle-neck and minimize delays. Another tool is the Baggage Estimation Based on Passengers, or Bebop, which will help to predict how many carry-ons will have to be checked at the gate. 'It was a curve ball that we were thrown,' Jones previously told the Airlines Confidential podcast. 'We always carry more bags than anyone else out there,' Jones said. The airline has introduced fees for checked luggage after 50 years Southwest bosses predict they will now need to take five times more bags at the gate and put them in the hold Indeed, customers have famously taken advantage of Southwest's generous policy to transport kitchen sinks and toilets across the country. 'We're going to need to do several things,' but 'we want to make sure the customer experience is still very high,' Jones told the podcast. 'So we're going to be extremely hesitant to go out and do heavy policing on bag size like some other carriers do.' However, the policy change 'will result in more gate checked bags and fees.' 'We're dependent on everything kind of flowing,' Jones said of Southwest's business model which relies on keeping aircraft in the skies rather than wasting time on the ground. Long-term Jones said the answer will be in the introduction of new planes to Southwest's fleet with more cabin bag capacity. Customers have criticized he new rules. 'The only reason people put up with no assigned seating was because they could check free bags. This is no better than a bus, now,' one wrote on Reddit. The fees are part of Southwest's efforts to boost its bottom line. In February the airline announced plans to cut 15 percent of its corporate workforce in a bid to cut costs. The layoffs - a first in the airline's 53-year history - will slash around about 1,750 jobs.
Travel Weekly
5 days ago
- Business
- Travel Weekly
Southwest enters a new era with bag fees and other policy changes
Bag fees will go into effect at Southwest Airlines on Wednesday, May 28. 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. 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. Southwest effective May 28 also is introducing a branded basic economy fare, Basic, which replaces the carrier's longstanding low-end option, Wanna Getaway. Once Southwest moves to assigned seating, expected to happen early next year, the Basic fare will resemble other basic economy products in the industry, with those ticket holders only receiving a seat assignment upon check-in and being last to board. Also, Southwest's policy of awarding flight credits that don't expire will end on May 28. Instead, issued credits will expire after a year. The elimination of free checked bags marks the end of an era for Southwest and the U.S. airline industry. Southwest is implementing bag fees 17 years after the other major U.S. carriers started charging for checked bags.
New York Times
5 days ago
- Business
- New York Times
Southwest Airlines Sets Baggage Fees
Southwest Airline's longtime free luggage policy on basic economy fares will end on Wednesday when the airline begins charging a $35 fee for one checked bag and $45 for the second, according to a spokeswoman for Southwest. Until now, Southwest was the only major U.S. airline that allowed passengers to check two bags at no extra cost, but in March, the airline announced that it would start applying baggage fees to boost revenues and cut costs. The airline reported a net loss of $149 million in the first quarter. Under the new policy, customers flying Business Select or those with high loyalty status will be spared the additional fees; passengers with a Southwest Airlines co-branded credit card will be able to check one standard bag at no additional cost. Checked bag fees will apply to tickets booked on or after May 28 for Basic, Wanna Get Away Plus and Anytime fares. The baggage fees are in line with other major U.S. airlines, which typically charge between $35 and $45 for a first checked bag. In July, Southwest also announced that it will end its popular open seating policy, allowing passengers to choose their seats once they board an aircraft. Starting in early 2026, the airline will transition to assigned seating and begin offering premium seating at an additional cost. The Wall Street Journal first reported the new baggage fees on Tuesday. Follow New York Times Travel on Instagram and sign up for our Travel Dispatch newsletter to get expert tips on traveling smarter and inspiration for your next vacation. Dreaming up a future getaway or just armchair traveling? Check out our 52 Places to Go in 2025.
The Independent
6 days ago
- Business
- The Independent
Southwest Airlines flyers warned of final day before decades-old policy change
Today is the last day to book a Southwest Airlines flight without incurring baggage fees, as the airline ends its long-standing policy of free checked bags. Announced in March, the new policy, effective for flights booked from Wednesday onwards, marks a shift from Southwest's traditional approach. Previously, the airline allowed passengers to check up to two bags for free, a policy heavily promoted in its advertising campaigns. Under the revised rules, only Rapid Rewards loyalty program members, business class ticket holders, and those with a Southwest credit card will continue to enjoy complimentary checked bags. This change means other passengers will now have to pay for the previously free service. Southwest will continue to offer two free checked bags to Rapid Rewards A-List preferred members and customers traveling on Business Select fares, and one free checked bag to A-List members and other select customers. Passengers with Rapid Rewards credit cards will receive a credit for one checked bag. People who don't qualify for those categories will get charged to check bags. The airline said in March that it also would roll out a new, basic fare on its lowest priced tickets when the change takes effect. The airline estimated in September that charging bag fees would bring in about $1.5 billion a year but cost the airline $1.8 billion in lost business from customers who chose to fly Southwest because of its generous baggage allowance. Southwest did not immediately respond to a request for comment on its new checked bag fees, but most major airlines typically charge between $35 and $40 for checked bags. Another policy that will take effect on Wednesday is Southwest requiring passengers to keep their portable chargers in plain sight while using them because of concerns about the growing number of lithium-ion battery fires. These aren't the only changes at Southwest. The Dallas airline previously announced that it was leaving behind another Southwest tradition, the open-boarding system it has used for more than 50 years. Southwest expects to begin operating flights with passengers in assigned seats next year. The airline also said last year that it would charge customers extra for more legroom and offer red-eye flights. Southwest has struggled recently and is under pressure from activist investors to boost profits and revenue. The airline reached a truce in October with hedge fund Elliott Investment Management to avoid a proxy fight, but Elliott won several seats on the company's board. The airline announced in February that it was eliminating 1,750 jobs, or 15% of its corporate workforce, in the first major layoffs in the company's 53-year history.
