Is Southwest Considering a Change to its Free Baggage Policy?
by Daniel McCarthy
Southwest Airlines is fresh of making the biggest shift in its 57-year history, having axed its open-seating policy in July. Now, there are some rumors that another huge change could be coming.
According to Bloomberg, Southwest is at least asking its passengers what it thinks about changing its baggage policy, which might be the most customer-forward policy in the industry. Currently, Southwest offers all passengers the option to check bags at no additional cost, something no other U.S. airline does.
Bloomberg cited a survey of some of its loyalty members, focused on the airline’s bag policy and which Southwest confirmed, as a hint that a change could be coming. According to the report, the questionnaire specifically asked about “hypothetical scenarios imposing bag fees for lower-cost fares.”
Southwest has long maintained that the policy is not changing. EVP and CCO Ryan Green said in April during the company’s quarterly earnings call, that “no, we are not considering bag fees.”
“People choose Southwest Airlines because we don’t have bag fees,” Green said, adding that 60% of its customers say that fly Southwest because of that policy, according to a J.D. Power Survey. “Bag fees are not on the table for consideration.”
Still, Southwest’s open seating policy was also a staple of the airline and a reason some chose Southwest. That was axed in July after 57 years. Southwest cited customer research as the reason for that change.
It’s also worth noting that Southwest is currently in a proxy fight with an activist investor, Elliot Investment. Elliott, one of the airline’s largest shareholders, is seeking to replace 10 of 15 directors on the Southwest board and replace CEO Bob Jordan.
After the open-seating news, Elliott put out a statement that said that change, among a myriad of other initiatives Southwest announced, came “more than a decade late.”
