Southwest Airlines is discontinuing its free baggage policy, a hallmark for the airline, and this move has attracted attention from competitors like United and Delta. At a recent conference, United's CEO noted this change could resonate significantly, describing it as 'slaying the sacred cow'. Delta's CEO echoed this sentiment, indicating that Southwest's previous baggage policy attracted customers that may now consider other options. This change marks a significant shift for Southwest amidst investor pressure and is likely to affect market dynamics as airlines increasingly rely on ancillary fees for revenue.
United's Scott Kirby said that the Texas-based carrier's elimination of its free bags perk was like "slaying the sacred cow." "It will be a really big deal for Southwest," Kirby said at the JPMorgan industrials conference. "It would be good for everyone else."
Delta's Ed Bastian remarked, "Clearly, there are some customers who chose them because of that, and now those customers are up for grabs." This signals a potential shift in customer loyalty in the competitive airline market.
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