Southwest Airlines, the airline whose business plan inspired Ryanair’s Michael O’Leary, will begin charging fees for checked bags for the first time after more than half a century of flying, abandoning a free bags policy the airline said distinguished itself from its rivals.
The new policy affects all passengers except those in upper fare classes, Rapid Rewards elite members, and credit card holders
Pressure from Elliott Investment Management has prompted the airline to reconsider longstanding customer perks,
Last year, U.S. airlines generated over $5bn in baggage fees, with Southwest’s decision aligning it with competitors
Southwest indicated that it could gain between $1bn and $1.5bn in additional revenue but may face a potential loss of market share due to this policy change.
