Southwest Airlines ends a free bag of bag policy: in order for changes to affect the carrier

Southwest Airlines They could lose some of their free time passengers to rival their latest decision to start charging proven bags, according to an industry expert.

It’s a politics – together with open seats – which helped the carrier to distinguish from its competitors for over 50 years and appeal to a wide range Passengers who are aware of the budget. Southwest announced this week that he would only offer free checked bags to certain customers of loyal and business classes from May 28.

“Although the idea of ​​adding a bag fee can function well on the budget table, Southwest is at risk of losing a stake in the leisure market market,” said Peter McNally, a global chief of the sector analyst at the third Bridge, for Fox Business.

Airlines see a lower customer demand, reduce financial expectations

The change followed a few months after the company warned that it would start offering a assigned sitting and offering top -notch seating capabilities on all flights, another move intended to increase profits by charging larger rates for top -notch sites throughout the network.

Both moves point out that the company’s financial challenges forced him to re -evaluate his approach. The southwest was also among several major US airlines this week, which invited their quarterly financial expectations because the industry is fighting with softer demand of economic insecurity and other factors.

With his latest change, Southwest could lose competition for flights with longer games, but not in the whole of his business.

The southwest has many flights with a short path that deal with passengers who usually go on a day or a one -night trip and do not require covered luggage. For these types of fast trips, Southwest will continue to offer some of the most concise prices on the market.

“The four -member family flying to Orlando in the southwest now has more costly competitive options, such as American, when you add in your bag,” McNally said.

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For example, “Big Three” – Delta, American and United – “have powerful fidelity programs that make them more competitive in the US leisure market, and offer some premium options,” said McNally.

Southwest also said this week that he plans to introduce a new basic ticket for his tickets for the lowest prices purchased 28. Or after May 28 before he starts offering more premium sitting with additional legs for a larger charge.

“Although our experts see the opportunity of a more premium option (eg additional leg space), and it will take time to play because the cabins should be reconfigured,” McNally said, but “it is not currently an increase in revenue from saying:” We are charging these bags now. ”

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However, McNally said that the basic economy would be quite standard, because airlines will not be able to lower the prices so much.

“The low -budget end of the airline industry determined that the lower boundary of the price. The spirit, after all, went bankrupt. The costs increased during the pandemic because of the work rate and remained there,” he said, adding that they are contractual and will not change.

Fuel costs have decreased in the last few years, offering a little relief, but the possibility offering extremely low prices is still limited. McNally said.