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Southwest Airlines is shaking up its travel policies by eliminating free checked bags, a move aimed at boosting revenue. Announced earlier this year, the change brings the carrier’s baggage fees in line with major competitors like Delta and American Airlines, marking a shift in strategy for the low-cost operator.
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Southwest Airlines has announced it to pull back its free checked bags policy after more than 50 years. On Tuesday, May 27, the airlines revealed that the budget airline will now charge $35 for a customer’s first checked bag and $45 for their second checked bag. The policy revocation has left travellers disappointed as the free checked bags differentiated the airlines from their competitors, as reported by mLive.
However, it continues to offer the perks to guests with A-List Preferred status, or those purchasing a Business Select fare still receive two free checked bags. Additionally, travelers holding a Southwest credit card or A-List status in the Rapid Rewards program are entitled to one free checked bag per flight.
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According to the Associated Press reports, the company has estimated that the service charge will earn them a revenue of $1.5 billion annually. However, the airlines also noted that it will also face a loss of $1.8 billion in business as customers opt other airlines after the change in policy.
The budget airline is set to make even further changes as it will soon begin to assign seats. It means that the open boarding system, which was in place for more than 50 years, will also cease to exist. There has been no announcement as to when the switch will happen.
Southwest’s Rapid Rewards program is also getting an overhaul, with enhanced perks for travelers who purchase Business Select fares or hold higher-tier status. Meanwhile, members buying lower-cost tickets will see a reduction in the number of rewards points they earn.
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