Southwest Airlines to Introduce Checked Bag Fees: Industry Reaction

Southwest Airlines’ decision to start charging for checked bags has been described by United Airlines CEO Scott Kirby as the “slaying of the sacred cow.” Kirby believes the move will benefit the entire U.S. airline industry where bag fees are standard. Southwest will begin charging for checked bags starting May 28, though the exact fee remains undisclosed. The airline’s top-tier A-List Rapid Rewards frequent flyers, Business Select fare purchasers, and cobranded credit card holders will remain exempt. This marks a significant shift for Southwest, which has marketed itself for nearly two decades as the carrier where “bags fly free.” The change comes under pressure from investors, including Elliott Investment Management, and aims to boost profits. Southwest CEO Bob Jordan stated that customer booking behavior through new channels did not justify maintaining the free bag policy. The airline’s future changes, including assigned seating and premium seats, will roll out gradually over the next few quarters. — news from The Points Guy

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