Southwest Airlines, known for its customer-friendly policies, is ending its free checked bag policy after more than 50 years. The decision comes as the airline faces pressure to increase profits from big competitors. This move has upset many loyal customers, who are now considering flying with other airlines that offer more perks. Retailers, restaurants, and airlines have been pulling back on free perks since the pandemic. Southwest’s decision pits investors, including activist hedge fund Elliott Investment Management, against customers. The airline believes that charging for checked bags will not only increase revenue but also improve the customer booking experience. Despite criticism from customers, Southwest’s shares rose as a result of the policy changes. The decision to end the free checked bag policy is part of the airline’s efforts to increase profits through business-model tweaks like assigned seating. Southwest is confident in its ability to handle a possible increase in gate-checked bags and onboard luggage. The real test will be whether the bag change affects Southwest’s turnaround times. As for customers, they may have to adjust to the new reality of paying for checked bags on Southwest flights.
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