President Kaltbaum Capital Management Gary Kaltbaum analyzes Nvidia and Southwest Airlines on ‘Varney & Co.’
The United Airlines and Delta Air Lines executives on Tuesday dealt with Southwest Airlines rival, making a major change in their proven bag policy.
Southwest announced that he would end his long -standing policy of free checked bags starting in May. Some customers, including Southwest Rapid Rewards A-List, preferred members and passengers for business selection, will retain the possibility of checking two bags for free with the southwest when the new policy enters into force, Said the carrier.
Southwest will also offer one free checked bag to members of the A-List and “Other Selected Customers” and a loan of one credit card members for fast prizes.
Passengers use Kiosk Southwest Airlines Co. (Scott Eisen / Bloomberg via Getty Images / Getty Images)
Move – a significant change from all passengers in the southwest, which is allowed two free checked bags – she announced airline On Tuesday, on the same day as a conference of JPMORGAN industrials.
Southwest Airlines announces a great change in a longtime passenger
At the conference, the United Airlines CEO of Scott Kirby asked the question of the impact of the southwest, which dropped his free check of bag policy, saying that he would think it would be “really big” for a carrier based in Dallas.
United Airlines Boeing 777 passenger aircraft at Denver International Airport in Denver. (Robert Alexander / Getty Images / Getty Images)
“It would be good for everyone else. We’ll make them more competitive,” he continued. “But it mostly influenced low -grade customers.”
“Our customers who have a credit card and [the frequent flyer program] Get free bag fees, because this is the reason we never worry about we will match it. But I think it will raise the tide for the southwest across the board. Relative margins will be worse in competitive markets as this will cause some customers on the sidelines to be transferred to competitive airlines, “Kirby said.
Kirby added that he thought “far bigger thing was” “it’s the murder of the Holy Cow.”
“I look at it as a big thing because it feels a financially conducted-air-based company focused on results than ever before,” Kirby said.
To release 15% of corporate staff in the southwest of the cost of reducing costs
President Delta Glen Hauenstein also offered his thoughts to decide Southwest during Delta presentation at a conference.
| Dice | Security | Last | Change | Change % |
|---|---|---|---|---|
| Luv | Southwest Airlines Co. | 30.10 | -0.25 |
-0.84% |
| Dal | Delta Air Lines Inc. | 45.31 | -1.37 |
-2.93% |
| Ul | United Airlines Holdings Inc. | 72.46 | -3.60 |
-4.73% |
“I think there are obviously some customers who have chosen them for that and now these customers are ready to catch,” he said. “We will see how this is played in the next period of time while they continue to implement more changes to their products. Some good for customers, I think the seats have been assigned, of course, probably from many business passengers, premium economic seats that liked and clearly, so it is a mixed bag of transition to multiple heirs and they are in that transition.
On Tuesday, the southwest also said that his “tickets with the lowest prices” purchased on May 28 or after May 28 will have a new basic price.
Southwest Airlines Boeing 737 Max 8 aircraft departs from Los Angeles International Airport. (Kevin Carter / Getty Images / Getty Images)
The carrier previously indicated that he also plans to start allocating the seats and offering the superior sitting capabilities on all flights, deviating from his seating cabin and all-economics.
Executive director Southwest Bob Jordan said on Tuesday at a conference that the efforts of the company were to introduce awarded sites for sitting and premium sitting “on the way, and technology and the modification of the fleet”.
Airlines see a lower customer demand, reduce financial expectations
He said that the company “perfected our planned sale date of these products in the third quarter of this year, and the operation is now planned to start in the first quarter of 2026.”
Fox Business’ Daniella Genovese contributed to this report.
