Passengers who fly with southwestern airlines will soon face luggage fees for the first time in more than five decades.
The low -cost transportation company clears the long -term free luggage policy, a signature feature that helped it to distinguish from competitors.
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Starting May 28, the first -class taxi traveler, the repeated publishing track, and some credit card holders will avoid new fees.
The latest in a series of changes more than 50 years after the first promises of customers.
This change comes after the pressure from the Elliott Investment Management investor, who has paid the main transformations in the airline operations, CNBC said.
The southwest was also struggling with dull profits, and CEO Bob Jordan aims to enhance the airline operating margin to at least 10 % by 2027 – an increase of only 2 % in the past year.
This goal was once a record expectation from the southwest before the epidemic, but the airline failed to bounce financially.
Southwest has long been proud of Fly Fly Fly, a registered brand that symbolizes its commitment to customer privileges.
But since the competing airlines had a collection of $ 5.5 billion in luggage fee last year, SouthWest is now under pressure to generate more revenues.
The airline said it needs additional income to make up for the high operating costs.
“What has changed is that we realized that we need more revenues to cover our costs,” Andrew Watson Operations Manager told CNBC.
Jordan had previously insisted that the free -examined bags were decisive in keeping customers loyal.
He said last summer: “After the fare and the schedule, free bags are cited as the No. 1 case in terms of the reason for the selection of customers southwest.”
Despite this situation, the airline appears to have turned its melody under the influence of Elliot.
The company won five seats in the board of directors after obtaining its share, and since then it has been defending radical changes to enhance profitability.
Travelers who buy tickets after May 28 will now have to pay unless they keep the preferred position in the A list A or a southwest credit card.
The last southwestern changes
- Luggage fees were presented For the first time in more than 50 years, the southwest will start imposing duties on passengers to obtain specific bags. This applies to the tickets purchased on May 28 or after, with the exception of the higher -class taxis, some credit card holders, and frequent bulletins.
- New economics fee – Southwest will launch a basic economic fare, similar to competitors, as low -priced tickets are offered with less privileges.
- Fast rewards change Miles will now rely on the repeated traveler on how much customers spend, instead of the number of flights that have been taken. Air recovery rates will also turn into a dynamic pricing model, which means that they will cost more during peak times.
- Trip – Airlines will end for the tickets purchased after May 28 after one year, or sooner, depending on the type of ticket.
- Workers' demobilization and cost discounts – Southwest recently announced its first mass demobilization, as it reduced 1750 jobs in companies, or about 15 % of the headquarters of the headquarters, to reduce costs.
- The end of the open seats – In July 2024, Southwest announced plans to give up an open sitting policy, which is an essential part of its brand for more than 50 years, and moving to designated seats with excellent options for additional space.
- Executive tremors operations The airline separated in ways with the chief transformation staff Ryan Green, who warned of luggage. It also replaced the head of financing for a long time and a senior administrative official earlier this year.
- Path and cutting the program -The southwest carried out unbelievable roads, summer training, the events of the staff team, and the long -term traditions held by the airline for decades.
Source: cnbc
The members of the A Stardation menu will get one bag for free, while first -class travelers will get two.
The southwest quietly separated with the chief transformation staff Ryan Green last month, who warned of the loss of customers due to luggage fees.
Green said last September that the southwest will lose more revenues from passengers who turn into competitors, which he will receive from the bags, according to CNBC.
His departure and policy stove indicate a major strategic axis in the direction of the airline's business.
The passengers have long bowed on the policy of the Southwest free bags, which was rare in the American aviation industry.
The southwest did not reveal the cost of new luggage fees.
