This happens: Southwest Airlines Start charging passengers to check bags for the first time.
This is a stunning change that shows a pioneer-time-ready part of an executive customer executive Take it up from opponents over a half a century of flight of hope of Add income.
Southwest changes come after the months of pressure from the activist Elliott Investment Management. The company took a stake on a plane last year and won five board seats as pushed for easy changes To the company, held in decades – so far – with perks like free checked bags, changed tickets and open seats.
For tickets purchased on or after the Southwest customers at all but the main type of tier fare should pay to check the bags, even if there are exceptions. Elite frequent flyers holding “A-List preferred” Status will still get two bags and the list members will get a free check bag. Southwest credit card holders will also receive a free check bag.
“Two Fly Free Bags” is a registered trademark on the Southwest website. But it is a decision to about-face on what executives long cast as a sacrosanct passenger perk brings the largest us domestic carrier in line with its rivals, which together generated $ 5.5 billion from bag fees last year, according to federal data.
Southwest Executives have long been told that they don’t plan charging for bags, say Wall Street analysts it’s a primary reason why customers choose the plane.
“After fare and schedule, fly free bags are quoted as No. 1 issue in terms of why customers choose a Jordan calling in July.
But the Southwest changes its tone.
“What has changed so we know we need more income to hide our expenses,” says Coo Andrew Watterson in an interview with baggage changes. “We think these changes we have announced now lead to that part of sharming than possible case.”
In September, the mainstone officer of Southwest Ryan Green, telling the analysts showing the analyzes of passengers who have undermined opponents when it begins Charging for bags For it does from the fees.
“The fact that free bags is a key driver who has chosen to create the risk that customers may choose competition if we change policy,” he said.
Southwest said in the last month it had Divided ways to be green.
Other Changes
The plane also said Tuesday it would launch a new, basic economic fare, something opponents offered for years.
The Southwest, in addition, customers will change customers to Rapid: Customers will receive many miles to the flyer depending on their payment. Redemption rates will vary depending on the flight demand, a dynamic price model is used in price.
And flact credits for tickets for tickets purchased on or after May 28 end a year, or earlier, depending on the type of fare purchased.
This is the latest in a string of many new Southwest changes while its performance falls behind opponents.
In July, the Southwest was shocked by passengers when it was announced to slit it Open sitting model For designated seats and add “premium” additional legom options, end decades in a colon class.
Airline also looks at its costs. The higher costs out of the pandemic gets a bite from margins of the plane.
In the last month, announced Southwest First tease massCutting about 1,750 jobs nearly 15% of corporate personnel, many of its trunks, a decision Jordan “never since 53 years of flight.
“We are in a very important moment as we move Southwest Airlines to a trick, faster, and more agile organization,” he said in the last month.
Last year, Southwest announced retirement in the financial oceans long, Tammy RomoWho has replaced the Shecutsive Executive Tom Doxey, and the main administrative official Linda Rutherford. The two executives work southwest for more than 30 years.
Southwest is also cut Unbeatable routesSummer internships and teamsuilding events made in decades.
