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Southwest Airlines announced Tuesday it was ending its free checked bag policy, incensing customers and thrilling its rivals.
The Dallas-based airline said the changes would “drive revenue growth and reward its most loyal customers,” since it is still offering two free checked bags to Rapid Rewards A-List Preferred Members and to customers traveling on Business Select. A-List members, Rapid Rewards credit card holders, and select other customers will be offered one free checked bag, while all other customers will have to pay to check bags.
United Airlines (UAL-4.51%) CEO Scott Kirby reacted to the news at a J.P. Morgan (JPM+0.14%) investor conference, saying Tuesday, “It’s the slaying of the sacred cow.”
“It will be a really big deal for Southwest,” Kirby said, according to Business Insider. “It would be good for everyone else.”
Delta (DAL-2.63%) CEO Ed Bastian also seemed pleased with the news, saying at the same conference that “clearly, there are some customers who chose them because of that, and now those customers are up for grabs.”
On social media, Amtrak poked fun of the changes, which start on May 28, saying, “guess we’re the only ones doing free baggage now.”
Southwest’s free bag policy made many customers loyal to the brand, which has been undergoing some shakeups following a series of layoffs. It recently announced the addition of premium seats and the planned elimination of its open seating policy, as it tries to combat a series of disappointing earnings reports.
Airline industry analyst Henry Harteveldt, of Atmosphere Research Group, said yesterday he thought the move was a big mistake.
“This is how you destroy a brand. This is how you destroy customer preference. This is how you destroy loyalty. And this, I think, is going to send Southwest into a financial tailspin,” he told CBS News. “Southwest, with these changes, becomes just another airline.”