Southwest Airlines announced the latest change to its business model.
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Southwest Airlines is set to charge passengers to check bags for the first time.The new policy takes effect from May 28, and is the latest fundraising move from the airline. As recently as September 2024, the airline said it wouldn’t start charging for check bags.
Southwest Airlines announced Tuesday that it will start charging passengers to check bags for the first time.
From May 28, passengers who aren’t part of a loyalty program or traveling on its most expensive fare, Business Select, will have to pay to check a bag.
The airline said the move was intended to “deepen and reward loyalty” for its “most engaged customers.”
It added that it would also introduce a Basic fare on its cheapest tickets, with additional options for assigned seating and extra legroom.
Charging for luggage is the latest move in the budget carrier’s shake-up of its business model — as it has faced pressure from the activist investing firm Elliott Management. Just six months ago, the airline said it would not start charging for bags.
Last July, Southwest ended its long-standing open-seating model, which allowed passengers to choose their seats upon boarding. It also announced plans to let customers pay for seats with extra legroom.
Last September, as Southwest outlined a three-year plan, it stood firm on its policy of offering every passenger two free checked bags.
It said research showed this set Southwest apart from its competition, and removing it would reduce demand and “far outweigh any revenue gains created by imposing and collecting bag fees.”