Latest news with #WannaGetAway
Travel Weekly
3 hours ago
- Business
- Travel Weekly
Southwest checks in on flyer reaction to bag fees, Basic fares
Southwest has recorded better-than-expected results from its May 28 implementation of bag fees. But the carrier's replacement of its Wanna Get Away fare bundle that same day with a basic economy fare caused a revenue hit for the three weeks that followed. During the airline's July 24 call to discuss its second-quarter earnings, executives said that Southwest was selling a higher-than-expected rate of paid bags per passenger, and that the rate is in the middle to high end of the U.S. industry. As a result, said chief financial officer Tom Doxey, the airline expects to earn $350 million this year just in bag fees. Southwest also stressed during the call that the bag-fee rollout took place without operational problems. Since not all bags fly free at Southwest any longer, planes are loaded with more carry-on bags than before. And checked-bag totals are down about a third. But incidents of gate agents asking flyers to gate-check their bags have only increased modestly, chief operating officer Andrew Watterson said. CEO Bob Jordan also said flyers aren't booking away to another airline. "There's no customer reaction to bag fees," he said. The story, at least for a short while, was different with basic economy. A dip when Southwest switched to Basic Watterson said that from May 28 through June 15, the airline lost out on bookings as flyers went to their website and saw the no-frills Basic product, which doesn't come with bags and doesn't allow changes without a fare upgrade. Wanna Get Away had come with two free bags, no change fees and other perks not matched by the Basic fare. As a result, the airline took a hit of half a percentage point in the second quarter in its revenue per available seat mile and expects a further hit of one percentage point this quarter. However, Doxey said, those third-quarter impacts are for flights purchased but not yet flown. The booking losses caused by the Basic fare came to an end mid-June and are not an ongoing problem, he said. Overall, Jordan expressed confidence with Southwest's ongoing commercial transformation, which takes its next big leap on July 29 when the carrier opens the books on assigned seats and extra-legroom seats for flights beginning Jan. 27. Jordan said Southwest was on track to achieve its 2025 goal of $1.8 billion in incremental earnings before interest and taxes (EBIT) due to new initiatives and cost-saving measures. Southwest's Q2 results, by the numbers For the second quarter, Southwest reported net income of $213 million, down from $367 million during the second quarter of 2024. The airline reported operating revenue of $7.2 billion, down 1.5% percent and $50 million below analyst expectations, according to the investment website Seeking Alpha. Operating expenses were $7 billion, up 0.9% from 2024. Southwest stock was down nearly 12% in late afternoon trading.
Business Insider
27-05-2025
- Business
- Business Insider
Southwest Airlines (LUV) Will No Longer Allow Two Free Checked Bags for Passengers
Southwest Airlines (LUV) is ending its long-standing policy of allowing two free checked bags for most passengers. Starting Wednesday, passengers who buy Basic, Wanna Get Away Plus, or Anytime fares will now have to pay to check bags. While the exact fee hasn't been announced, other major U.S. airlines usually charge around $35 to $40 for the first checked bag. Southwest made this change after pressure from activist investor Elliott Investment Management, which pushed for cost-cutting and changes to the airline's business model in order to boost profits. Confident Investing Starts Here: Along with charging for checked bags, Southwest is introducing a Basic fare similar to what airlines like Delta (DAL), American (AAL), and United (UAL) already offer. This new fare doesn't allow for ticket changes, it boards last, and has fare credits that expire in six months instead of a year. Southwest is also ending its old 'Wanna Get Away' fare and moving toward assigned seating for 2026 flights. In addition, planes will be updated with more legroom seats, and mobile bag-tag printers will be added at airports to speed up the check-in process. However, it is worth noting that some travelers will still get free bags, including those with Business Select tickets, A-List loyalty members, and holders of a co-branded Southwest credit card (and their travel companions). Free carry-on rules aren't changing, so Southwest expects more passengers to bring bags onboard. Interestingly, even though the change upset some customers, CEO Bob Jordan said that it hasn't hurt bookings. He also noted that these changes are aimed at making Southwest more efficient and competitive in a tough market. Is LUV Stock a Good Buy? Turning to Wall Street, analysts have a Hold consensus rating on LUV stock based on five Buys, six Holds, and five Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average LUV price target of $30.47 per share implies 1.6% downside risk.
Business Mayor
26-05-2025
- Business
- Business Mayor
It's the last chance for Southwest plane tickets with two free checked bags, as policy ends in days
Passengers check in for Southwest Airlines flights at Chicago Midway International Airport on Feb. 18, 2025 in Chicago, Illinois. Scott Olson | Getty Images Set your alarm. Southwest Airlines customers have only one day to go before the company starts charging to check bags for the first time in more than half a century. Starting Wednesday, Southwest will end its blanket 'two bags fly free' policy. It was a perk that was sacrosanct among customers and the airlines' longtime executives alike, setting the airline apart from competitors. But baggage fees brought in nearly $7.3 billion for U.S. airlines last year, according to federal data, and Southwest executives who have long vowed to hold onto the policy have been under pressure to raise revenue. The airline hasn't yet said how much it will charge to check bags, but rivals generally charge about $35 or $40 for a first checked bag for domestic flights, though there are some exceptions. Along with starting to charge for checked bags, Southwest has announced major changes to its business model over the past year, like getting rid of open seating. The carrier is also debuting basic-economy tickets like those sold by Delta Air Lines , American Airlines and United Airlines on Wednesday. Here's what travelers should know about the end of free bags on Southwest: What is changing? Southwest will no longer offer two free checked bags with many tickets purchased on or after Wednesday. For tickets purchased before then, a Southwest spokesman said the carrier will honor the terms of those fares, like the two free checked bags. The fees will apply to its no-frills Basic, its Wanna Get Away Plus and its Anytime fares. Southwest announced the policy in March after months of pressure from activist Elliott Investment Management, which took a stake in the airline last year and won five board seats, pushing for major changes at the company like its free checked bags, changeable tickets and open seating. Are there exemptions? Yes. Travelers with top-tier status in Southwest's Rapid Rewards loyalty program will get two free checked bags, as will customers in the highest-level Business Select fares. Customers with a Southwest Airlines co-branded credit card and their travel companions booked together with the same card won't get charged for their first standard checked bag. A-List frequent flyer members, the second-highest tier in the loyalty program, will also get their first bag checked free of charge. New fare type: Basic Southwest on Wednesday will also start selling basic-economy tickets. With the new Basic fare, customers won't be able to make changes to their tickets, they'll be among the last customers to board and their fare credits will expire in six months, compared with 12 months for other ticket classes. In another change, the airline is ending its Wanna Get Away fare, which was the lowest tier ticket before the changes. What about assigned seats? Can Southwest handle it? Southwest executives have told staff that they expect passengers to carry on more luggage (those policies for free carry-ons aren't changing) and have said the airline is installing larger overhead bins on its Boeing fleet, which should help with an influx of carry-on bags. Executives have also said staff will get mobile bag-tag printers at gates and airport lobbies to assist customers. Are people mad? Southwest can hardly post on social media — even about babies and puppies on board — without getting angry comments about the changed baggage policy. But CEO Bob Jordan told CNBC last month that the policy change announcement the company made on March 11 hasn't deterred customers. 'We have seen no book-down on that day or after that day,' he said on 'Squawk on the Street' on April 24. READ SOURCE
Yahoo
21-05-2025
- Business
- Yahoo
Southwest Airlines serves 11 Florida airports. When 2 free checked bags deal ends (it's soon)
If a trip sounds pretty good right about now, there's something you should know: Southwest Airlines will stop offering free checked bags. If getting that perk affects your decision to fly Southwest, you'll need to book your flight soon. The new bag policy — the first time the airline has charged for checked bags in its 54 year history — is just one of many the company announced earlier this year, including bringing assigned seating and a new priority boarding procedure. ➤ What to know about Southwest Airlines' new fare bundles, from Choice Extra to Basic Here's what you should know. Southwest Airlines has not posted on its website how much checked bags will cost, saying, "Our checked bag fees will align with industry standards, and we will share more details as we approach May 28, 2025." Current checked bag policies at Southwest Airlines are: Size: 62 inches, measuring length, width and height Weight: up to 50 pounds each Prices: Three+ bags: $150 per bag Oversize bag: $200 per bag with maximum of 80 inches Overweight bag: $150 per bag weighing 51 to 70 pounds or; $200 per bag weighing 71 to 100 pounds American for travel within the U.S., Puerto Rico and U.S. Virgin Islands: 1st checked bag: $40, $35 if paid online 2nd checked bag: $45 Delta for domestic flights within the U.S.: 1st checked bag: $35 2nd checked bag: $45 United for domestic flights: 1st checked bag: $40, $35 if paid online at least 24 hours before flight 2nd checked bag: $50; $45 if paid online at least 24 hours before flight ➤ What is the cutoff time for checked baggage? Critical deadlines for major airlines Southwest will begin charging for checked bags for reservations booked on or after May 28, 2025. The fees will apply to all tickets booked starting May 28 and applies to Anytime, Wanna Get Away plus and Basic customers. No charges will be applied for any reservations booked on or before May 27, "regardless of your travel date." Weight and size limits still apply. Here's how to continue to get free checked bags (or a bag) if you book a reservation after the May 27 deadline: Business Select fares will continue to receive two free checked bags. Rapid Rewards A-List Preferred Members will receive their first and second checked bags for free. A-List Members and Rapid Rewards Credit Cardmembers will receive their first checked bag for free. Hawaii residents traveling between the islands will continue to receive two free checked bags. Note that checked bag benefits will not apply on flights booked with a partner carrier. As of May 21, 2025, Southwest said serves 117 airports across 11 countries. Southwest also serves 11 Florida airports: Destin/Fort Walton Beach, VPS Fort Lauderdale, FLL Fort Myers, RSW Jacksonville, JAX Miami, MIA Orlando, MCO Panama City Beach, PNS Pensacola, PNS Sarasota/Bradenton, SRQ Tampa, TPA West Palm Beach, PBI This article originally appeared on Sarasota Herald-Tribune: Southwest Airlines free checked bags deal in Florida ends soon
Hindustan Times
02-05-2025
- Business
- Hindustan Times
Southwest Airlines' new fare bundles: What are the benefits?
In a move set to redefine its legacy of simplicity and customer-friendly policies, Southwest Airlines is launching a sweeping transformation of its fare structure and passenger benefits, as reported by Arizona Republic. The changes, effective from May 28, 2025, mark one of the most significant shifts in the carrier's history—affecting everything from baggage policies to seating choices, as reported by LA Times. Also read: Crew wrongly accuses passengers of stealing security guard's phone, flight grounded for 88 minutes Southwest will now offer a four-tier fare system designed to offer travelers a clearer range of choices based on price, flexibility, and onboard perks. The new tiers are: *Wanna Get Away – Basic fare for cost-conscious travelers *Wanna Get Away Plus – Includes limited flexibility and modest extras *Flight Flex (Choice) – Offers enhanced options like flight changes and early boarding *Business Select – The premium tier with the highest flexibility and priority services The restructured pricing aims to better align Southwest with the broader airline industry while still offering value across fare levels. For decades, Southwest stood out in the US aviation market for allowing two free checked bags per passenger—an industry rarity. Under the new policy, that benefit will now be limited to travelers flying on Business Select fares or those holding top-tier loyalty status. Passengers in lower fare classes will need to pay for checked baggage, with pricing details expected to be released soon. This change brings Southwest in line with most major carriers who already charge for checked luggage, signalling a shift toward revenue diversification and operational consistency. Another dramatic shift is the end of the airline's signature open-seating model. Going forward, passengers will be assigned seats, with premium seating options available for purchase. These upgrades will include seats with extra legroom and more favorable cabin locations. The move is expected to streamline the boarding process, improve in-flight comfort, and offer passengers greater control over their travel experience. Southwest's most frequent fliers won't be left behind in the reshuffle. Members with elite loyalty status—such as A-List Preferred—will continue to enjoy priority boarding, bonus points, and complimentary checked bags. While the structure of the loyalty program isn't being overhauled, these changes reinforce a shift toward rewarding long-term customer engagement. Southwest's revamp comes amid growing competition from low-cost carriers and legacy airlines alike. With consumer expectations evolving post-pandemic, airlines have been increasingly focused on unbundling services and offering more personalised fare options. The updated fare bundles and added premium offerings reflect this trend, giving passengers the ability to customise their travel experience without compromising the brand's trademark affordability. Passengers planning to fly with Southwest after May 28 should familiarize themselves with the new fare structure and plan accordingly—especially regarding baggage and seating preferences. With more a la carte pricing options now in place, comparing fare tiers at the time of booking will be crucial to avoid unexpected fees or missed perks.
