DALLAS — Southwest Airlines is changing directions, once again, saying so long to its two free checked bags policy that’s existed throughout the company’s 53-year history.  

What You Need To Know

  • Some flyers at Dallas Love Field said they were disappointed in the baggage policy change

  • One marketing profesor says Southwest will have to rely on its loyal customers

  • Southwest said in September charging bag fees would bring in about $1.5 billion a year. However, the company added it would also cost them $1.8 in lost business from customers who flew because of that very policy

When Venu Bhagyanager, a frequent Southwest Airlines flyer, learned about the change, he wasn’t shocked.

“Yeah, I enjoyed that; but in the same token, I also think from their point of view,” he said. 

It’s the latest domino to fall in the company’s attempt to appease shareholders, according to Southern Methodist University marketing professor Dr. Venky Shankar.  

“What will the customers’ response be? That’s a question in itself,” Shankar said.  

In 2024, Southwest Airlines announced they would end its open boarding system and move to assigned seating by 2026.  

Then, in February, the airline eliminated 1,750 corporate and leadership jobs, marking the first major layoffs in the company’s history.  

“A long-term risk, and also, the perception of the airline will change a lot,” Shankar said.

Other flyers at Dallas Love Field said they were disappointed in the baggage policy change, while Bhagyanager understands it’s about making a profit, trying to keep up with untapped potential.  

Southwest Airlines revealed in September, before the talks of doing away with its baggage policy, that charging bag fees would bring in about $1.5 billion a year. However, in that same vein, the company added it would also cost them $1.8 billion in lost business from customers who flew because of that very policy.  

It’s a dilemma that Shankar says will need to be addressed.  

“Perhaps, if the customer reaction is too strong, they might reexamine that, but as of now, they are committed to making all of these changes that they have announced,” Shankar said.  

Shankar notes that losing the baggage policy leaves Southwest Airlines following the same model as other airlines, meaning the company will have to rely on its loyal customers and customer service to attract others.  

Southwest CEO Bob Jordan released a statement about the new direction, saying, “we have a tremendous opportunity to meet current and future customer needs, attract new customer segments we don’t compete for today, and return to the levels of profitability that both we and our shareholders expect.”  

Southwest will follow other companies in providing free checked baggage to members and certain ticket options.  

“I see the outcomes as, you know, in the short-term, as you said, there will be some revenue enhancements,” Shankar noted.  

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