Southwest Airlines has announced it will eliminate its long-standing free checked baggage policy starting May 28. Historically a key differentiator, the change will require that only Rapid Rewards A-List Preferred members and Business Select passengers receive two checked bags at no charge. The airline plans to introduce a basic economy fare while also increasing points for higher-priced seats. Industry experts suggest this move blurs Southwest's market position, as it struggles to compete with both budget carriers and premium airlines amid changing consumer demand.
"The changes will help us return to the levels of profitability we all expect, and to support our collective long-term success. It's also about adapting to what our customers want." - Southwest CEO Bob Jordan.
"Southwest's policy change is like the slaying of a sacred cow." - United Airlines CEO Scott Kirby.
"I think some Southwest customers could now be up for grabs." - Delta President Glen Hauenstein.
The end of free checked bags leaves Southwest stuck in the muddy middle of low-cost and premium carriers.
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