Southwest Airlines ends free bag policy: How change could affect the carrier

Southern West Airways may lose part of the entertainment travelers of competitors, with its recent decision to start imposing fees on the bags examined, according to an industry expert.

It was a policy-besides the open seats-which helped the carrier to distinguish between its competitors for more than 50 years and appealed to a wide range of budget-aware travelers. SouthWest announced this week that it will only provide free bags that have been examined for some loyal business category and business category starting from May 28.

“While the idea of ​​adding bags fees may work well in a spreadsheet, Southwest is at risk of losing a class in the entertainment travel market,” Peter McNali, the global head of the sector analysts in the third Bridge, told Fox Business.

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The change came several months after the company warned that it will start providing custom seats and providing distinctive seating options on all flights, which is another step designed to enhance profits by charging higher prices for distinguished seats through its entire network.

Both movements highlight how the company’s financial challenges forced to reassess its approach. Southwest was also among many major US Airlines this week, which overlooks its quarterly financial forecast, as the industry guarantees a softer demand than economic uncertainty and other factors.

A plane southwest of Boeing 737 MAX 8 was seen parked at a gate at Baltimore Washington International Airport in Baltimore, Maryland. (Angus Mordant / Bloomberg via Getty Images / Getty Images)

With its last change, Southwest may lose to compete for long flights but not completely its business.

Southwest has many short flights that meet the needs of travelers who usually go for one day or one night trip and do not require specific luggage. For these types of fast trips, Southwest will continue to provide some of the most competitive prices in the market.

McNali said: “The family of four members was flying to Orlando in the southwest now has more cost competitive options, such as America, when the bag fees add.”

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Changing the bag policy comes after the company warned that it will start providing seating options for sitting and sitting outstanding on all flights. (Angus Mordant / Bloomberg via Getty Images / Getty Images)

For example, “Big Three” Airlines – Delta, American and UNITED – “It has strong loyalty programs that make it more competitive in the entertainment market in the United States while providing some distinct options,” said McKinale.

South West also said this week that she plans to offer a new basic fee for its less -price tickets purchased on May 28 or after it before it started providing more distinguished seats with an additional space for a higher fee.

“While our experts see the chance of revenue from more distinct options (for example, additional space), these opportunities will take time to play while reshaping the immunities, but we are not the instant revenue boost from saying,” We are now carrying these bags. ”

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However, McNali said that the basic economic fare will be somewhat standard, because the airline will not be able to reduce prices much.

He said: “I found the low -cost party for the aviation industry that the minimum pricing.

Fuel costs have decreased in the past few years, saving some comfort, but the ability to provide very low prices is still limited. McNali said.