“Baggage fly free.” The trademarked slogan has appeared in lots of Southwest Airways promoting campaigns, however the tagline will not be true come Could 28, 2025.

In a stunning announcement at Tuesday’s JP Morgan Industrials Convention, Southwest CEO Bob Jordan launched a collection of coverage modifications that he claimed would current a “great alternative to fulfill present and future Buyer wants, entice new Buyer segments we don’t compete for right this moment, and return to the degrees of profitability that each we and our Shareholders anticipate.”

Profitability, that is the important thing phrase.

Southwest has been lagging behind a lot of its rivals, with increased prices and inefficiencies consuming into the underside line. When the activist hedge fund Elliott Funding Administration L.P. took a ten% stake within the provider and gained a major place on its board, business watchers realized that main, probably detrimental, modifications had been on the best way for passengers. Since Elliott took a place within the airline, Southwest has introduced the next modifications, all main departures from its longstanding insurance policies:

• Checked baggage charges for the primary and second bag will now be charged to all passengers, apart from prospects on Enterprise Choose fares.
• Assigned seating will debut in some unspecified time in the future in 2026, and costs will apply for seat choice. The provider’s “first come, first served” open seating coverage is ending.
• Primary economic system fares will earn fewer Speedy Rewards factors, can’t be modified, and can see a discount in flight credit score validity (6 months).

New fare merchandise take away advantages beforehand given to everybody

The modifications to Southwest’s fare merchandise are outlined within the following chart, which the provider shared in a press launch:

Lots of the advantages beforehand afforded to all passengers will now be restricted to passengers buying dearer fares, or those that attain elite standing within the airline’s frequent flyer program.

The removing of key advantages like free checked luggage may make journey on Southwest considerably dearer for households, and it raises questions on what influence this can have on vacationers’ alternative of airways.

Lodging for Wheelchair Customers

Southwest Airways has lengthy been wheelchair customers’ favourite airline, due largely to the provider’s open seating coverage and the flexibility for wheelchair customers to switch immediately into the entrance row bulkhead seats.

With these seats set to turn into most well-liked further legroom seats, and seat choice carrying with it a charge, I reached out to inquire if wheelchair customers will nonetheless retain complimentary entry to these seats.

“We’re persevering with to refine our Buyer insurance policies as a part of our ongoing transformation work and don’t have particular particulars to share proper now,” mentioned Southwest Airways spokesman Lynn Lunsford. “It’s our intention to proceed to adjust to the legislation whereas serving the wants of all our Clients who fly with us now.”

Whereas the Air Service Entry Act (ACAA) requires airways to make bulkhead seating out there to these with fused or immobilized legs (14 CFR 382.81d), that doesn’t cowl all individuals touring with their very own wheelchair. It stays to be seen whether or not Southwest will go “above and past” the ACAA requirement to accommodate wheelchair customers sooner or later. I’m hopeful (however not optimistic) that they are going to — doing so would require resisting their activist investor’s demand to prioritize revenue above all else.

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The Companion Cross continues to be round

Southwest has eradicated almost all the options that made it distinctive, however one such characteristic nonetheless exists: the Companion Cross. Saved from the cuts for now, the Companion Cross is a perk that allows qualifying passengers to pick one individual to fly with them freed from cost (government-imposed taxes and costs are collected) a limiteless variety of instances, as long as the sponsoring passenger has bought their very own ticket or redeemed factors for a flight.

The companion go is a perk reserved for the provider’s most frequent flyers and is earned by flying 100 qualifying one-way flights or incomes 135,000 qualifying factors inside a calendar 12 months. Sometimes, Southwest’s bank card companions embrace the go as a part of the sign-up bonus for Southwest cobranded bank cards (which is the case on the time of publishing). Passengers and households with the go can considerably cut back the price of touring, and it is a perk that retains many vacationers loyal to what has lengthy been thought-about a no-frills airline.

Closing Ideas

The place has the LUV gone? The provider that has a coronary heart for a brand has applied a collection of unfriendly modifications that can lead prospects to reevaluate the Southwest worth proposition. By becoming a member of its rivals in charging pesky charges for seat choice and checked baggage, Southwest has surrendered a lot of what made it stand out.

In serious about my very own journey patterns, the provider’s elimination of customer-friendly advantages will considerably cut back the chance that I fly with, and even take into account, Southwest. The reality is, Southwest’s rivals now current a extra compelling product providing, with free wifi at Delta and JetBlue, seatback leisure screens at Delta, JetBlue and United and a greater number of snacks at JetBlue. How will these modifications influence your relationship with Southwest Airways?