The unthinkable has happened. Southwest Airlines, the champion of "bags fly free," is about to start charging for checked luggage. Is this a strategic masterstroke or a betrayal that will send loyal customers fleeing?
"It's the slaying of the sacred cow," declares United Airlines CEO Scott Kirby, suggesting the move will benefit the entire industry.
But what does it really mean for travelers and the future of Southwest?
Effective for new bookings from May 28, Southwest will impose fees for checked bags, mirroring the policies of most major U.S. airlines (typically around $35 for the first bag).
Who gets a free pass?
The burning question: Will carry-on fees be next? Southwest isn't saying, but the possibility looms.
For nearly two decades, Southwest's "bags fly free" policy has been a cornerstone of its marketing and a major differentiator. As the airline adopts practices of its rivals, will it lose its unique appeal?
"There's a very high awareness of our bags fly free policy," admitted Southwest's chief transformation officer, Ryan Green, just months ago. "It is far and away the top feature that differentiates Southwest from our competitors."
What changed?
The shift is largely driven by investor pressure. Elliott Investment Management, now holding nearly 20% stake in Southwest, has been pushing for increased profitability.
The domino effect:
Is this a necessary evolution or a short-sighted strategy that undermines Southwest's core values?
Southwest CEO Bob Jordan claims that recent data from new booking channels revealed that the "bundled offering with free bags" wasn't as beneficial as previously assumed. Listing flights on Expedia and Google Flights provided new insights, leading to updated assumptions.
COO Andrew Watterson added that the carrier was "over delivering" to travelers booking the cheapest "Wanna Get Away" fares.
The rationale: Bag fees are now justified by fresh data and a desire to optimize revenue from all fare classes.
Southwest has cultivated a famously loyal customer base. The big unknown: How many of those flyers will defect as Southwest becomes more like its competitors?
Kirby believes any market share shift will be minimal, occurring only at the "margins." Jordan also suggests that Southwest anticipates only a slight decrease in passenger loyalty.
But are they underestimating the backlash?
The bag fees are just the beginning. Southwest is rolling out a series of changes that will fundamentally alter the passenger experience:
"It is a really exciting time at Southwest Airlines," says Jordan, perhaps with a touch of irony.
Is this excitement shared by Southwest's loyal customers, or is it the sound of a brand transforming beyond recognition?