Southwest Airlines is ending its free baggage policy, and its competitors smell opportunity. United and Delta's CEOs talked about what the change means for them on Tuesday.
Southwest Airlines Co. (NYSE:LUV ) J.P. Morgan Industrials Conference March 11, 2025 11:15 AM ET Company Participants Bob Jordan - President & CEO Lauren Woods - CIO Andrew Watterson - COO Tom Doxey - CFO Conference Call Participants Jamie Baker - JPMorgan Mark Streeter - JPMorgan Jamie Baker So, thanks, everybody.
Southwest Airlines said Tuesday it will charge for checked bags for the first time in its more than half-century of flying. The carrier is under increasing pressure from Elliott Investment Management, which has called for drastic changes to the company's business model.
Southwest Airlines will begin charging passengers for some checked luggage, ending a free-bag policy that has been a hallmark of the carrier since its founding more than five decades ago. Customers will be charged for their first and second checked bags unless they hold top-tier loyalty status or are traveling on a business fare.
Southwest Airlines (LUV 6.71%) is making a number of moves designed to boost profitability, including abandoning its decades-long practice of not charging for checked bags.
The policy change is likely to disappoint travelers but it's had the opposite effect on investors as the shares surged Tuesday.
Delta Air Lines (NYSE:DAL) and Southwest Airlines (NYSE:LUV) are making headlines today after issuing key updates.
Southwest Airlines, which long stood out amongst competitors for its low-cost, no-frills model, is starting to re-evaluate its approach as it seeks to capture more revenue.
Southwest's latest major change follows a monthslong campaign from an activist investor.
Southwest Airlines (LUV) soared this morning after announcing it will charge checked bags for the first time. However, as Jenny Horne notes, the industry has to overcome guidance headwinds.
Southwest Airlines plans to end its decades-old policy of allowing free checked bags. The carrier also will launch a basic economy ticket that doesn't allow for free changes.
Southwest Airlines on Tuesday announced plans to start charging passengers for checking in their baggage in a bid to boost revenue, ending a long-running free baggage policy that served as a core part of the low-cost carrier's identity.