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Southwest Airlines announced some changes today that will make the carrier feel nothing like what it has for the entirety of its operation. Its trademark free checked bags are going away for many, it will introduce variable redemption rates, and future flight credits will once again expire. None of these changes are customer friendly and honestly I don’t think they will be enough to save the struggling airline.
No More Free Checked Bags For Most Passengers
Southwest will continue to offer two free checked bags to Rapid Rewards® A-List Preferred Members and Business Select® passengers. One free checked bag will be provided to A-List Members and other select passengers (not sure what that means). Southwest will also credit one checked bag for Rapid Rewards Credit Cardmembers. Passengers who do not qualify for free checked bags will be charged for their first and second checked bags (weight and size limitations apply). Charges will apply to flights booked on or after May 28th. This move is fairly surprising considering that Southwest has used this as a differentiator for many years.
Variable Redemption Rates
Southwest will introduce variable redemption rates across higher-demand and lower-demand flights. Passengers will see the number of points required to book an award flight fluctuate based on the demand and timing of the flight. Award ticket costs will be directly tied to the cost of revenue tickets.
Flight Credits Expire
In 2022, Southwest added a policy that flight credits would have no expiration date. Going forward, these will be valid for one year from the date of issue. Some fare classes (like Basic Economy) will expire after six months.
Basic Fares Replace Wanna Get Away
Southwest is replacing its most inexpensive Wanna Get Away fares with a stripped down Basic fare. These fares will not be eligible for any changes (although they can be canceled for free up to 10 minutes prior to departure). They are also not eligible for free same-day changes (or to even standby).
Bob Jordan, President, Chief Executive Officer, and Vice Chairman of the Board of Directors at Southwest Airlines, said:
We have 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. We will do all this while remaining focused on what’s made us strong—our People and the authentic, friendly, and award-winning Customer Service only they can provide.”
I’m not sure how making things more restrictive and/or cost more is going to attract more customers or segments that they don’t currently have today. If anything, I think passengers are going to choose not to fly Southwest. Time will tell, but it’s not looking good for the airline.
Anthony’s Take: This is a desperate final breath for a failing airline. It is quite clear that investors pushed them to change everything and in doing so, the brand lost itself. I would not be surprised if this was one of the moves that ended Southwest altogether.
(Image Credits: Southwest Airlines and Nick Morales via Unsplash.)
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Advertiser & Editorial Disclosure: The Bulkhead Seat earns an affiliate commission for anyone approved through the links above This compensation may impact how and where links appear on this site. We work to provide the best publicly available offers to our readers. We frequently update them, but this site does not include all available offers. Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed, or approved by any of these entities.
1 comment
Elliott sure can destroy an airline. All I can figure is that the separate parts of Southwest are worth more than the intact airline.