Goodbye to ‘Bags fly free’ on Southwest, The Last Airline Freebie in America

Almost Nothing is guaranteed in life. Certainly not weather, ElectricityHealth, tarifs or eggsBut for more than 50 years, American consumers could count on Southwest airlines Letting them check bags for free.

Dallas-based southwest is Ending the policy in may. Customers are not happy.

“It was the only reason i flew southwest,” said makensey kaye alford, A 21-YLD Singer and Actress who lives Near Birmingham, Alabama.

Alford, who is planning to move to new york city later this year, said she would “definitely” Consider Taking Another Airline Now.

Southwest’s customer-friendly policies have Survived Recensions, Oil Price Spikes and even the Covid-19 Pandemic, Winning Itars of GODWILL and A Loyal Folling, Eveen as it has grown. No other airline carries more people in the united states than southwest.

Now, the airline with an unrivished streak of Profitability (Its almost Never Posted Annual Loss) Is under pressure to increase profits as big competitors outpace the airline. So it’s backpedaling off of years of banishing the thought that they would charge customers for bags, adding to other business-model tweaks like Assigned Seating That give it more in common with all other airlines.

Errol Joseph, 36, A Sales Consultant Who Lives in New York and Dallas, Said He Bold Now Consider flying on Delta air lines If the price is the same as southwest trust its planes have Seatback Screens, Unlike Southwest. Joseph added that with baggage policy change, there’s “pretty much no reason to be loyal.”

The bag policy has been Around Longer Than Most Women Women Women Waree to Get Credit Cards on his own without But thats days are over. No more freebies, America.

Retailers, Restaurants and Airlines are among the businesses that have been pulling back on Free perksFrom Complimentary Birthday Coffees to Free Package Returns, Since the Pandemic Ended.

Increasingly, Airline Perks are only available for Loyalty Program Members or Customers who Buy a More Expensive Ticket.

Delta offers customers free wi-fi on board, but only for that who have signed up for its skymiles loyalty programs. United Airlines is making a similar move, meaning, installing equipment on its planes for free If they are members of the airline’s mileageplus program.

It Typically takes real financial pressure for companys to return to give, but it’s not unpreceded. StarbucksFor example, got rid of upcharges for dairy alternatives To attract customers to try to reverse a sales slump.

Southwest’s Decision Pits Investors Against Customers.

Activist Hedge Fund and, as of Last Year, Big Southwest sharehlder Elliott Investment Management Has Been Increasing Pressure on the Airline to Raise its Profits as Rivals Like Delta and United Have Pulled Ahead. Elliot pushed for faster changes at the carrier, which has been long hesitant to change, so it could increase review. The firm last year won five board seats in a settlement With Southwest.

In Fact, after southwest unveiled the bag shift and other policy changes, its shares rose close to 9% this week, while delta, united and American, each fall more than 11%. Ceos of all the carriers Raised Concerns About Weaker-That-Expected Travel Demand, but Southwest Bucked The Trend, as it expects the changes to add Hundreds of Millions of Dollars to its bottom line.

“Sharehlder Activism is Reshapping Luv INTO A Company that We Believe Investors will Evently Gravitate to,” Wrote Seaport Research Partners Airline Analyst Dan McKenzie in ANASDEIE In ANASDEAE In ANASDEIE Raised His Price Target on Southwest’s Shares to $ 39 Thanks to the Policy Changes even Thought “Macro Backdrop is Glum.”

The decision to ditch the two-face-check bags is part of the airline’s big profit-seeking makeover in which it is shedding other long-standing offerings like open-seating and single-classs cabins Assignments and pricier extra legroom options.

It will also also start offering a No-Frills, No-CHANGES BASIC Economy Ticket. Flight credits will also also also have expiration data. Last month, southwest had its First-Eve Mass LayoffCutting about 15% of corporate jobs. It has also also slashed unprofitable flying.

Air Travel Hasn’T Study Still Over the Last Half Century, and while IT’s Held Onto Many Core Tans, Neither has Southawest. It has gradually made changes over the years, starting to sell things like early boarding, for example. And with Air Travel Breaking New records, assigned seating is Necessary for bot customers and to make the jobs of employE Easier, Southwest Executives Have Argue.

But Thousands Joined in Consures’ Cri de Coeur.

Southwest posted on Instagram on thuresday, two days after its bombshell announsment, saying “It’s not like we tradeed luka,” a nod to the Shocking February Trade of dallas maveracks Superstar Luka Doncic to the Los Angeles Lakers. As of Friday afternoon, the post, which also included information about the change, get more than 14,000 replies, far more than couple of Hindred Responses The Account Usually Gets.

“Taking a screen shot of this as it will be the thumbnail for the harvard business review case study of destroying a brand an entry company,” Replied Instagram User Rappid_EXPOSURE.

Frances Frei, A Professor of Technology and Operations Management at Harvard Business School, Said That, Indeed, No Other Company is likey as stodied as southwest.

“I sure hope this isn’t a case of activist investors coming in and insisting on a set of decisions that they won’t be around to have to have to endure,” She said. “Great Organizations Get Built Over Time. It does not take very long to ruin an organization, and i really do an example of that.”

Southwest’s Two Checked Bags-Fly-Free Policy Officially Ends May 28 but for Now the Slogan is Styl Found on Board, Printed on cocktail napkins.

There will be exceptions: customers who have a southwest airlines co-branded credit card can get one bag for free, and customers in its top tiers of service (Read: Princier Tickets) Orrs Top-Tier Loyalty program members will get one to two free checked bags.

Whather Customers Abandon Southwest or Simply Reacing to the Change Remains to be Seen.

The Ceos of Delta, United and Spirit This Week Said They See an Opportunity to win over customers Who Might Turn Away from Southwest.

Many travelers won’t a lot of other options, however, with so much consolidation amn us carriers and stronghold hubs, thought they might have to venture to another airports.

Southwest has a roughly 73% Share at Baltimore/Washington International Thurgood Marshall Airport, a More Than 83% Share in San Francisco Bay Oakland International Airport, and 89% Share in Long Beach, California, according to aviation-data firm cirium.

The Real Test, Harvard’s Frei Said, will be whether the bag change will low down southwest’s operation, with more customers bringing carry-on bags on board to avoid the checked Lugged Lugged Lugged Lugging FES

“I just fear the cost is being undressed,” She said. “It’s real operational harm to southwest if they go slower.”

Southwest is already prepaering its employees for an onslaught of customer luggage at the gate.

Just after its announs on tuesday, southwest told its employees in a memo that customers will “undoubtedly carry on more loggage than before.”

Gate agents will receive mobile bag-tag printers “Reducing the need for string bags” and the company will design new carry-on sizees so customers can see if they live According to a Staff Memo Sent by justin Jones, EVP of Operations, and Adam Decaire, Senior Vice President of Network Planning, A Copy of which waste by cnbc.

The airline also plans to speed up retrofits of its Boeing 737-800s and max aircraft with bigger overhead bins.

Frei said not charging for bags, unlike the costco $ 1.50 hot dog, is not a loss leader, something a company sells at a loss just to win over customers who might buy more expensive, and Profitable, Items.

As much as it’s been been beloved by customers, the checked bag policy also had a helped the airline turn planes Around faster.

“The reason isn’t if it’s kinder to customers. It’s because it’s a fast turnover airline,” She said. “If i charge for bags, you will be more luckly to carry more luggage on board. And when you carry more luggage on board, I lose my fast turnard Advantage.”

Southwest is confident that it’s prepared for an increase in gate-conducted bags and onboard lugges.

“We have a series of work streams that are underway with our current operations, to make this not impact our turns time,” Coo andrew Watterson Said in an intervief.

Time will tell how it shakes out. For now, we have the $ 1.50 costco hot dogs.