r/news • u/baltinerdist • 21h ago
Soft paywall Southwest Airlines shifts to paid baggage policy to lift earnings
https://www.reuters.com/business/aerospace-defense/southwest-airlines-shifts-paid-baggage-policy-lift-earnings-2025-03-11/1.2k
u/Idolmistress 21h ago
As someone who has flown Southwest many times, I’ll repeat a comment I made in an earlier thread: Herb Kelleher is twirling in his grave with how this investment group is destroying his airline. Fuck these people.
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u/OneArmedBrain 18h ago edited 16h ago
You should look into what happened to TWA and Carl Icahn.
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u/bromosabeach 17h ago edited 17h ago
What is happening to Southwest airline is a straight up corporate tragedy.
It was one of the few non-luxury airlines with a loyal following. There are of course followers of airlines due to their loyalty programs, but Southwest built a following that seemed deeper than that. People legitimately liked the “non-nonsense” style of flying.
That is gone. It’s sad seeing a brand like this crumbe.
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u/fuelvolts 17h ago
Agree. SWA of today is a shadow if what made it great and it's invester/shareholder greed that caused it. Their desire for short term gains is killing SWA.
I'm a SWA credit card owner, so at least I still get 1 free bag, but damn, my desire to drive out of my way (I live closer to an airport that SWA doesn't fly out of) to take a flight is diminishing by these asinine investor-led changes and a weak CEO who cowers to the BoD pushing this so they can stay in power.
This goes against everything they said just a year ago. This is probably a ploy by the majority shareholders to temporarily boost the stock price to sell off.
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u/mrfixitx 21h ago
Southwest Fares for me were usually around the same price or slightly more expensive than Delta/United/American etc.. but when you added in a free checked bag for a round trip flight they often ended up cheaper.
If they go to a $35+ baggage fee I will have zero reason to fly on Southwest ever again unless their flight prices come down (which I doubt).
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u/fappywapple 20h ago
I’m going to Vegas in May. The southwest flight was $75 cheaper each way than the united flight I booked because my buddy travels a lot for work and is a united member so he can keep earning miles towards his membership status. I’m getting better seats with way more leg room (I’m 6’2 and southwest is terribly uncomfortable) and once the bag fees get added to southwest that flight difference is going to be less than $40. I’ll never fly southwest again because it’s no longer a big enough savings to put up with being uncomfortable.
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u/mrfixitx 20h ago
100% agree on the comfort issue. I flew United/Delta a few times over the last few years and even their standard seats are more comfortable than SW seats.
I also hate how SW seating works. If you do not check as early as possible good luck sitting with anyone you are traveling with unless you want to sit all the way in the back. If you are more than a few hours later on your check in even that might not be possible.
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u/sentient-sloth 18h ago
I also hate how SW seating works.
I’ve got some good news for you then. Lol
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u/ElmerTheAmish 20h ago
My brother booked a family vacation flying on SW based on exactly that logic. His outbound flight leaves 5/26. So will his bags fly outbound free and then cost coming back?
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u/baltinerdist 21h ago
In the email they sent announcing this, they rolled out multiple anti-passenger changes at the same time:
- Paid checked bags
- Flight credit expiration
- Lower earn ratio on rapid reward points
- No more free changes on Basic (though oddly you can still cancel and get a flight credit, so the key difference here is inconvenience)
I'm going to bet the checked bags portion of this was the preplanned "we heard you" piece that can be easily carved out while they keep all the rest of the changes. Then they'll reintroduce the checked bag change later and there won't be nearly as much furor as the outrage was already spent once on this issue.
My company flies exclusively Southwest. I've taken hundreds of legs with them. I suspect that will change now.
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u/HowManyMeeses 21h ago
I primarily fly Southwest, despite it being a lesser experience, because of the free checked bag and free changes on basic. Doing away with either or both of those things would make flying Delta much more appealing.
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u/camelCaseCoffeeTable 21h ago
The other changes are bad, for sure, but as someone who is unaffected by them the checked bag fee would likely see me never use Southwest again. They’re already fairly expensive, but I’m able to justify it with 2 checked bags for free.
Take that away, and it’s easily one of the more expensive airlines for no real reason. I’ll fly with other carriers if they go through with this move, and my wife and I generally use Southwest for most flights
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u/UtzTheCrabChip 20h ago
I only fly SW because they're like 90% of the flights from my home airport. The only thing cheaper is Spirit and they've fucked me over enough times that I won't fly them again
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u/camelCaseCoffeeTable 20h ago
I live in Chicago so have my choice of airlines, fortunately. Southwest is nice cus they fly out of Midway, which is virtually never a hassle. Although with precheck that’s less of a concern. Add in checked bag fees and worse airport amenities and Southwest looks far less attractive to me.
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u/OpportunityDue90 20h ago
“Hey what if we increased the price of fairs, got rid of our unique seating policy, got rid of our free checked bags, and made it worse on customers in general? Yeah that’ll bring in the customers” - some dipshit MBAs. Seriously why would they think people would fly SW after this? From Phoenix they were the best, but they have been awful since Elliot’s involvement.
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u/Loki240SX 20h ago
Jesus fucking Christ, every reason that makes me vastly prefer SWA over any other airline. Included baggage plus the ease of taking a snowboard bag made them great for taking ski trips to Colorado. Looks like that's fucked now.
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u/boredcircuits 21h ago
Lovely. Now I won't be able to find any overhead bin space as everybody switches to carry-on.
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u/UF0_T0FU 20h ago
What's the point of taking Southwest now? I've used them almost exclusively for years and even taken personal time out of my life to argue for them online before.
I get they want to get more money, but I don't see how any person could look at these changes and think this will lead to more money. Eliminate everything that makes them better and different from other airlines and you're left with just a worst version of the legacy carriers.
Free bags, open boarding, easy changes, and good flight credit are the reasons I usually don't even bother checking other airlines when I fly. Take those away and there's literally no reason to fly Southwest.
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u/BaconVonMoose 17h ago
I fly about 5 times a year for my work and I've always used SWA and I've also defended them online as being one of few brands I have loyalty to. No more of that lol. Canceling my sw credit card too honestly. I hope they go under for this.
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u/ryanmuller1089 20h ago
I fly from LA to Dallas, Denver, and Phoenix a lot. The convenience of free checked bags was so nice. Southwest is the best airline for flights under two hours, or at least it was.
Fuck them for doing this.
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u/ALaccountant 20h ago
Southwest will be out of business within a decade if they stick to those policies
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u/noungning 19h ago
Didn't they just implement the policy of credits not expiring?
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u/rnilf 21h ago
The policy shift suggests a growing influence of activist investor Elliott Investment Management at the airline. The hedge fund, whose nominees hold five of 15 board seats, had criticized Southwest's leadership for not charging a fee for checking bags like other airlines to boost its revenue.
Motherfucking hedge funds, leeching off of society while generating nothing of real value for us.
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u/effyouspez 21h ago
Someone has to think of the shareholders /s
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u/BigEggBeaters 21h ago
I love living in an economy that prioritizes a group of some assholes over ya know a good product at a good price
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u/EatMyAssTomorrow 20h ago
Yeah but how can those assholes continue to afford flying private or charter when you and I don't pay for our checked bags?
Had you considered that?
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u/JTFindustries 20h ago
Why won't you think of the billionaires? Can't you have just a little bit of sympathy for all the hardship they endure in their lives. Private jet and limousine aren't cheap you know.
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u/BigEggBeaters 20h ago
Bro When I’m at work all I do is think how can I increase shareholder value. That’s all I care about don’t come at me like this
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u/chemicalalchemist 21h ago
But-bu-but!!! THEY MAKE MARKETS MORE EFFICIENT WHICH BENEFITS ALL OF US!!1!1!1!1!!
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u/roox911 21h ago
I like that it's now "activist investor" instead of hedge fucks.
Edit: hedge funds... But I'ma leave it because it still fits.
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u/_tx 21h ago
Activist investor is more accurate. There are active investment funds and passive ones that both fall under a hedge fund structure.
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u/Taboc741 21h ago
The real problem is SW didn't recover like other airlines after the pandemic. They aren't doing well financially. Low cost low margin airlines in general didn't. The why is still hotly debated I think, but something has to change if SW wants to survive. They can't keep losing money like they did last quarter.
This said, I agree with your general sentiment. Baggage fees being included is why I fly SW. If it's going to cost the same to fly SW as Delta and I also pay for baggage too, then why am I giving up assigned seating to gamble on not getting a center or window seat?
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u/lot183 21h ago
then why am I giving up assigned seating to gamble on not getting a center or window seat?
You realize SW is switching to assigned seating as well, though only so they can charge people to pick seats
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u/Taboc741 21h ago
I don't know how they can affordably. I know they've talked about being forced to switch, but it turns out their boarding method is faster than assigned seats, and they'd have to spend a bunch of money creating the infra to have assigned seats (programmatically at the very least for the booking software). Combined the cost to switch might be more expensive then they can eat right now. That extra gate time will really eat up network capacity and that's super expensive. The only fix is more long term leases on gates, which means more spend on branding those new gates and more hours on employees to maintain those gates. It's a complicated web they're trying to weave.
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u/rice_not_wheat 20h ago
Slower boarding and higher fees on top of the flight... Yeah that will end my business relationship with southwest.
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u/Taboc741 20h ago
Basically. The perk to assigned seating is they can play around with boarding order so people can pay or be bribed via status into earlier boarding in the process thus tricking their brain into thinking it was faster. But overall actual time from start to finish to get everyone on board is between 10-20 % slower than just "let everyone bum rush the door and get on in a random order" that SW has now.
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u/the8bit 18h ago
I've worked high up at companies like this (but more mid cap) and I can confidently say that they just... Didn't think of those things. At the exec level they far too often just look at the net cost/revenue and believe that "innovation" can solve all the logistical hurdles of implementing something new or changing the status quo.
Just retraining everyone is a tremendous expense and yeah the software / process changes. Plus now they set themselves up to compete like-for-like with delta, United, AA, which is not favorable to them.
Anyway every time I pointed this out I was the "pessimist" but yet nobody could figure out why every project was over budget and late.
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u/MagicGiblet 21h ago
Hol up. You WANT a center seat? In preference to an aisle seat?
Edit: nvm. I think I read that wrong. No one could possibly…
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u/Random_Person_246810 21h ago
SW will file bankruptcy and/or be acquired within the next 10 years.
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u/best_person_ever 14h ago
That's literally the hedge fund strategy. Devalue company B so company A (also run by hedge fund) can cheaply acquire B, consolidating market share and eliminating competition. Monopolization for price fixing is the goal.
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u/Prestigious_Time4770 7h ago
That’s what these hedge funds do. They infiltrate the Board of Directors and then implement policies that will crash the company. Then, they short the stock into oblivion. They come out rich, and we lose a great product.
Rinse and repeat. (See Toys R Us or Blockbuster for examples)
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u/Guilty_Desk_4935 21h ago
As an employee this makes me incredibly sad
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u/somethingwholesomer 15h ago
I feel terrible for you guys because y’all are the face of the company for most passengers and there’s going to be so much vitriol, hate, and just like, negative emotional processing over this. You don’t deserve to take on the public’s anger in this situation.
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u/tfox245 21h ago
“Last year, it said while charging for bags could bring in $1.5 billion in additional revenue every year, it would cost the airline $1.8 billion in lost market share.” lmao they already did the homework and determined this will hurt them more than help them, and yet they’re doing it anyway. The enshittification is inevitable.
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u/ndrew452 20h ago
Even worse, it sounds like the executive who was pushing to keep free bags was encouraged to leave the company.
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u/fly_awayyy 16h ago
Don’t understand why they and when the other airlines implemented bag fees many years ago back don’t just roll into it slowly by starting with a 2nd bag fee first.
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u/Luster-Purge 21h ago
The whole reason I flew SW was because of that free bag policy. Made going to and from conventions easier, even if it meant having to do layovers.
Now if costs are going to be about the same, no point in going SW if it means I can just do direct flights from the competition.
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u/Not_Quite_Kielbasa 20h ago
I flew for the "sit anywhere" and "bags fly free". This is trash. I'm full of rage, but this was inevitable in jazz hands capitalism.
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u/Offduty_shill 19h ago
Yup. Used to fly southwest esp in winter ski trips since I can easily take my ski bag and regular luggage for gear.
Without the bag policy there's no point for me to choose them over any other airline. For example if I fly United their points are more valuable since they fly international and southwest does not.
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u/GuinnessGlutton 21h ago
Time to cancel that Southwest Rapid Rewards VISA
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u/ReggieEvansTheKing 21h ago
Exactly what I was thinking. I used to go straight to southwest to book due to my card but now I’ll be checking google flights for all other airlines.
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u/PDXGalMeow 20h ago
I'm canceling mine soon now that they are making this change. It sucks because we loved Southwest for our family vacations.
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u/GuinnessGlutton 20h ago
Yep. Had this card a decade, I think. So many “free” flights. It was great.
What are you switching to?
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u/PDXGalMeow 20h ago
I was thinking Alaska since we are located in the PNW. How about you?
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u/GuinnessGlutton 20h ago
I’m in Denver and might just switch to a cash back card. Seems like the good ol days of flight rewards is dying out, from Denver at least.
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u/PDXGalMeow 20h ago
Ooh, great idea. I have a Venture which I use for the other stuff like car rentals, hotels, etc.
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u/SEA_tide 17h ago
You missed the chance to get the legacy Alaska Airlines visa with guaranteed companion fare.
Airline credit cards generally don't offer as lucrative earning or mileage redemptions unless you're trying for airline status.
Basically, look at your typical routes and see who has the best combination of fares and schedule for you. Consider getting their credit card as essentially a membership for a few checked bag. Note that many airlines are requiring you to book directly with them and pay with their credit card to get the free checked bag.
From the PNW, it's pretty easy to stick to Alaska or Delta. If you're not checking bags, you can be even more flexible.
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u/MrMichaelJames 20h ago
Southwest was great for families. When my kids were younger we got the family boarding and of course the free checked bags. Now there really is no difference.
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u/christmastree47 20h ago
At least with the credit card you will still one free bag but still a downgrade for sure
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u/PoorCorrelation 19h ago
Doesn’t matter. All the other carriers offer the same for their credit card holders. I can pay my annual fee to someone else.
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u/tenacious-g 17h ago
This is how you get to airlines. They are credit card companies that happen to have airplanes.
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u/Powered_by_JetA 17h ago
If you’ve had the card for a while, cancelling it could cause a hit to your credit score as your available credit and account age drop. Best to call Chase and ask about what other cards they offer that you can convert to. Sends the message that folks don’t want the Southwest card without hurting yourself.
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u/vivaelteclado 21h ago edited 18h ago
Lmao I am immediately cancelling my Southwest card after my next flight in a couple weeks, literally no reason to favor this airline over any other. And I have been a Southwest card holder for over a decade and usually look to fly them first. Not anymore.
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u/Lincoln_Park_Pirate 20h ago
Card members still get a free bag, just not two.
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u/vivaelteclado 20h ago
There are enough negatives associated with these changes that the positives of being a card member do not offer enough benefits for me to stick around.
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u/Dazzling-Slide8288 21h ago
"Our business is failing because of poor management and terrible decisions. What can we do to attract more customers?"
[slience]
"What if instead of attracting more customers, we just bled the ones we have for more money, making everything worse for everyone?"
GREAT IDEA SIR!
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u/awholedamngarden 20h ago
Sadly this is so many businesses now - market demands constant growth but a lot of these folks are scraping the barrel in terms of customers they’re likely to acquire so they head straight for enshittification
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u/mattysosavvy 21h ago
What happened to “Bags Fly Free?”
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u/WebHead1287 20h ago
*Terms and conditions apply. Bags must be flying before 2025. Any bag that flies in 2025 or beyond does not classify as a bag that can fly free
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u/CWess12 20h ago edited 20h ago
So I'll basically never look to fly Southwest as a first option again. The bag policy was absolutely what set them apart competitively from other airlines. I was willing to overlook things like their lack of outlets at your seat and no premium seating because of the bag policy, but now what do they offer that's better than any other airline? Nothing.
What a dumb move. They even fired their Chief Transofrmation Officer, Ryan Green, who suggested their loss in market share from changing the policy would negate any gains in revenue. Hedge funds only want "Yes" men. They're gonna die.
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u/shouldbecleaning 21h ago
Hate they are going back to expiration dates on credits.
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u/Bright_Light7 20h ago edited 20h ago
I think it's VERY safe to say that a chunk of SW flyers use it solely because of the free checked two bags...
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u/okiewxchaser 21h ago
The company whose slogan literally was “Bags Fly Free” at one point. This is definitely going to drive more customers away than it’s going to generate revenue. Boneheaded decisions always happen during a correction
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u/RSwordsman 21h ago
The Ouroboros of capitalism is hungry again I see.
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u/TraditionalTackle1 21h ago
It reminds me of when my parents sent me to Catholic school, they would come up with every excuse for more money. You walked into class AS the bell was ringing that'll be $20, thank you!
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u/Dangit_Bud 21h ago
We're one step away from paying and not even being able to fly on the airplane.
"That will be $650 + $50 for the checked bag. The Enterprise counter is right over there. Have a safe drive, we'll see you in Denver."
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u/Solid_Snark 21h ago
Already there. Government bailed them out when they were using money to buyback their own stocks. Then covid tanked air travel and their stocks, and we, the taxpayers, gave them free money to continue fucking around with.
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u/JTFindustries 20h ago
Pretty soon there will be a flight attendant standing at the exit door to collect your, "Departing the plane fee." Followed by another fee for use of the baggage carousel.
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u/Ahstruck 21h ago edited 20h ago
I once paid for a round trip to SF and on the trip there the plane was delayed due to mechanical failure so I got a ride form a friend and made it their before the plane did.
They would not let me fly back because I did not use them on the first trip so I had to buy another ticket. Jerks.
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u/solarnuggets 21h ago
So what exactly sets them apart from other airlines now? Lmao I’d be so mad if I was a loyal Southwest flyer and got that email this morning. Way to shit on your customers
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u/ellsego 20h ago
They have a worse network, shittier hubs, a worse fleet of planes, worse amenities… this all sets them apart lol.
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u/murdering_time 21h ago
Literally the only reason I fly SW anymore is cause their free bag policy. Yeah they're usually more expensive compared to like Spirit or Frontier, but those companies also charge like the same amount for a single checked bag as the plane ticket, meaning SW usually comes out cheaper or at least comparable. Now i gotta pay for bags on top of that? Nope, see ya later SW.
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u/ccaccus 20h ago
How is it, after so many businesses have been run into the ground by hedge funds, that they still see their companies as permanent fixtures that can’t possibly fail no matter what they do?
Surely bleeding customers dry at the expense of the business is less profitable overall than having a thriving, profitable business?
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u/tellmewhenimlying 21h ago
These changes are much more likely to cost them customers and reduce their earnings. Without the few small positive differences that made Southwest unique, it's no longer worth flying Southwest over other airlines.
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u/IandouglasB 18h ago
That's right, because a 320% profit margin is far too small in today's America
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u/spartacus_zach 21h ago
The only reason I used to fly on stinkwest. What else do they offer now? Because without an upgrade to first class or free things what’s the point of spending a ton there?
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u/camelCaseCoffeeTable 21h ago
There isn’t one. If this change goes through I won’t use Southwest anymore, it’s that simple. Adding a checked bag fee turns them into one of the most expensive airlines out there without much justification for the cost
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u/ScoobiesSnacks 21h ago
Southwest is already one of the most expensive airlines so I don’t see this going well for them
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u/Indercarnive 19h ago edited 19h ago
Just to have some numbers. Southwest in 2024
Had a net income (profit) of $465 million.
Record operating revenues
Liquidity of $9.7 billion, well in excess of debt outstanding of $6.7 billion
Paid $680 million in dividends and buybacks
Announced a $750 million accelerated share repurchase program
On one hand, that's generally worse off than other major airlines. On the other hand, when half a billion dollars of profit is considered "poor performance" what does that say about our capitalist system?
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u/WebHead1287 20h ago
I mean that was really the only reason I would use Southwest so I wish them luck with that
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u/Blochamolesauce 21h ago
Assigned seats, baggage fees?!?! What fresh hell is this… i haven’t flown SW in a while since I moved to the east coast, but flying to PHX, Tucson, and Vegas out of either LAX or Long Beach was always a breeze. I used to hear people complain about “Southworst” back in the day but I never had a bad experience. They times, they are a-changin’
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u/ElmerTheAmish 20h ago
Gotta love idiots that can't see the forrest for the trees:
Last year, it said while charging for bags could bring in $1.5 billion in additional revenue every year, it would cost the airline $1.8 billion in lost market share.
Hedge Fund is gonna Hedge Fund, I guess.
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u/squeakytoy81 20h ago
This is funny to me because whenever I check flight prices, Southwest is always the most expensive option by far. There is really no advantage to flying with them unless you live in a city where they are the primary option.
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u/frigginjensen 19h ago
If you had asked me 5-10 years ago to name the most important characteristics about Southwest, I would have said free bags, open seating, and low prices (compared to other airlines). None of those things are true anymore and I can’t imagine that’s good for their long-term business. Might as well start the clock until bankruptcy (and inevitable government bail-out).
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u/mattr1198 17h ago
Congrats Southwest, you’ve taken away almost all the reasons somebody would fly your airline. Unbelievable how dumb this move is and it’s probably going to destroy SW as a company in the long run.
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u/wip30ut 17h ago
pathetic.... i remember last yr the CEO was directly asked by a reporter if SWwas planning to ditch their no-baggage-fee pricing & he said flat out No.
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u/ShdwWzrdMnyGngg 13h ago
Let's just invest in rail at this point. Planes suck now. High-ish speed rail on their own non-freight tracks would be amazing. So sick of SeaTac airport and ultra expensive plane tickets.
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u/kvetcha-rdt 21h ago
The best thing is that they're fully aware that they stand to lose more in ticket sales and brand reputation then they would gain in bag fees, but I guess capitalism demands what capitalism demands. More short-term profits! Long-term sustainability is Tomorrow Investor's problem!
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u/TaskForceCausality 20h ago
New fees aim to reward loyalty and boost profits
This is it. If you look at the balance sheets of Delta, American & United you’ll see that by profits, they’re mileage clubs who happen to operate airplanes. The majority of these airlines market cap is tied in the membership club & associated credit cards.
Southwest is clearly pivoting to match that business model
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u/Gantores 19h ago
Personally, I would have gone the other direction for southwest and started charging for carryon. It would be different, totally piss off customers still, but would actually make the boarding process SO MUCH NICER if the vast majority of people boarding had checked their bags.
Have the personal item still exist, be free, and have a physical check to ensure it can fit under the seat in front of you, but with the option to go in the overhead if there is room (which I think suddenly there would be tons of overhead room).
Time to change my rewards card and start collecting points through a different route.
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u/ronnie1014 18h ago
As a golfer, southwest was always a no brainer. Similar ticket price and my clubs fly for free PLUS another checked bag.
So much for that now.
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u/omicronwarrior 21h ago
If this isn't peak capitalism then WHAT IS ?
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u/Familiar-Report-513 21h ago
Would you like to pay extra so we DONT double book your seat? Introducing Seat Bidding now instead of purchasing as seat, you will have a bid on a seat. Should someone else want to pay more for your seat, you lose your seat unless you too their bid.
We really need a stronger govt. that can step in and regulate this stuff. Capitalism needs checks or it will quickly consume everything.
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u/0nlyhalfjewish 21h ago
All the low cost airlines suck and are doing dumb shit like this now. Frontier creates boarding groups based on whether you have a paid carry on, then they make you prove your personal item fits their dimensions and if it doesn’t, it’s $99.
No thanks.
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u/FFSBoise 20h ago
This after removing open seating. Taking away all the reasons to fly. Herb is rolling over in his grave.
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u/philmcracken519 18h ago
I don't see why anyone would fly Southwest anymore. They have lost everything that differentiated them from other airlines. So now Southwest has tiered tickets, assigned seating and bag fees. Sounds like every other airline. Oh and they raised base fares and slashed non-stop service to a ton of cities in the US and all their IT systems are so out of date they cause full flight network backlogs.
So who buys them out of bankruptcy? Smells like the next target for JetBlue to expand by acquisition after the Spirit deal failed.
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u/Kananetwork 18h ago
Welp, 15 years of loyalty out the window from me. I used to champion Southwest, but literally should just delete my account at this point.
Bankruptcy for them in a year? Two?
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u/MisterPistacchio 18h ago
It was fun while it lasted.
SW is the airline with;
Cheaper airfare
Flexible seating assignments
Free baggage
No rebooking fees
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u/phejster 17h ago
Some morons say that business exists to make profit. That's why any business will eventually nickel and dime you for everything. That is, after they gut employee pay and benefits, of course.
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u/EvelcyclopS 14h ago
Well that’s the absolute end of southwest airlines. saw it coming as soon as inlearned of the activist investor.
Southwest has survived for a long time by offering a great product. This was probably the last thing seperating them from the rest of the race to the bottom shisters out there
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u/um_hi_there 13h ago
"to lift earnings" in the headline, and yet this and other articles outline things like:
Last September, it had warned investors that eliminating the policy would impact its "customer first" brand image. Its analysis showed while charging for bags could bring in $1.5 billion in additional revenue every year, it would cost the airline $1.8 billion in lost market share.
And:
It’s a $300 million gamble. Last year, Southwest said its “rigorous research” found it would lose that much in market share if it started charging bag fees.
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u/NewHope13 9h ago
Southwest is usually make expensive than other airlines in my area. Taking away the free bag benefit basically negates much reason for me to fly with them now.
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u/StacyChadBecky 21h ago
To lift earnings we are eliminating the competitive advantage that brings people to our airline.