Bags will no longer fly free on Southwest Airlines — unless you're willing to pay up for a high-priced fare, boast elite status, or carry one of its cobranded credit cards.
In an announcement that figured to shake the foundation of its relationship with customers, the Dallas-based carrier on Tuesday announced it will end its two free checked bags policy later this spring.
Starting with bookings made on or after May 28, most Southwest passengers will have to pay for every checked bag.
It's a seismic shift away from a standout policy that the airline — as recently as last fall — made clear was among its top differentiators from other U.S. airlines.
There will some exceptions: Southwest A-List elite status members will get their first checked bag free. So will Rapid Rewards loyalty members who carry a Southwest credit card.
Two small subsets of Southwest's customer base will retain their right to two free bags: top-tier A-List Preferred members, and passengers flying on the carrier's highest-priced Business Select fares.
But for all other customers, checking a bag will cost extra — just as it does on nearly every other U.S. airline.
In a statement to TPG, Southwest said it was "evolving rapidly," implementing new initiatives that "support business objectives and create choice for customers."
Not mentioned in Tuesday's statement: the immense pressure the carrier has faced from activist investor group Elliott Investment Management, which last year gained a stake in the company and in recent months upped its influence on the airline, which has suffered from less-than-stellar earnings in recent years.
In just the last month, Southwest laid off 15% of its corporate workforce — a move once unthinkable for a company known, starting under longtime executive Herb Kelleher, for doing right by its staffers.
And, last week, TPG reported the carrier had slashed the number of points most Rapid Rewards members can earn on a Southwest flight — a change the airline specifically, last fall, said it wouldn't make. (Changes to the number of points required for a redemption are coming soon, too, the carrier revealed Tuesday).
All of this comes as Southwest is already preparing to ditch the open seating policy that it was practically synonymous with. That will go away in favor of the assigned (and extra legroom) seats found on the planes of all of its top U.S. competitors.
Together, the changes represent something of an inflection point for an airline long known for being customer- (and employee-) friendly, devoid of the add-on fees that became ubiquitous at other airlines over the last two decades — and, above all else, a brand that stood out from the competition precisely because it was different.
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