Southwest Airlines has announced the end of its long-standing free checked bags perk.
Starting Wednesday, passengers will be required to pay for checked bags. The airline will charge $35 for the first checked bag and $45 for the second. Weight and size limits will be enforced for checked bags.
The big picture: Passengers not meeting specific criteria such as being Rapid Rewards A-list members, Business Select fares travelers, or holders of the airline’s credit card will have to pay for checked bags.
- Rapid Rewards A-List preferred members and Business Select fare passengers will still be entitled to two free checked bags, while A-List members will get one free checked bag. Passengers with Rapid Rewards credit cards will receive a credit for one checked bag.
- Southwest estimated last September that implementing bag fees would result in generating $1.5 billion annually. However, the airline also anticipates losing $1.8 billion in revenue from customers who had chosen Southwest due to its complimentary baggage allowance.
Go deeper: Aside from the baggage policy shift, Southwest Airlines is implementing other changes.
- Passengers will be required to keep their portable chargers visible due to concerns about lithium-ion battery fires.
- The airline is also transitioning to flights with assigned seats in the coming year, moving away from its open-boarding system.
Driving the news: Southwest Airlines has been facing challenges and pressure from activist investors to boost profits and revenue. In response, the airline made significant organizational changes, including laying off 1,750 jobs, representing 15% of its corporate workforce – the first major layoffs in its 53-year history.
