On Tuesday, United and Delta executives made major changes to their checkbag policy, focusing on rival Southwest Airlines.
Southwest has announced that it will end its long-standing policy of free check bags, which will be launched in May. Some customers, including passengers from Southwest Rapid Rapid Rewards A-List Preferred Members and Business Select, will retain the option to check two bags for free southwest when new policies come into effect, Carrier said.
Southwest also offers one free check bag to A-list members and “other choice customers”, and at that point credit one bag to a prompt reward credit card member.
The move – a major change from allowing all Southwest travelers to receive two free check bags – was announced by the airline on Tuesday on the same day as the JPMorgan Industrials Conference.
At the meeting, United Airlines CEO Scott Kirby questioned the impact of Southwest's throwing its free check bag policy, saying he thought it was “a real big deal” for his Dallas-based career.
“It's good for everyone else. We'll make them more competitive,” he continued. “But it mostly impacted low-end customers.”
“With customers who have credit cards [the frequent flyer program] Because that's why we didn't worry about matching it. But I think it will raise the southwest current all the way through. In highly competitive markets, relative margins will deteriorate. Because some customers in the margin will switch to competing airlines,” Kirby said.
Kirby added that he thinks “a much bigger thing” is “a sacred cow murder.”
“I think it's a big deal because I feel it's more financially driven. It's a more outcome-driven airline than ever,” Kirby said.
Delta President Glenn Hauenstein provided his thoughts on Southwest's decision during Delta's presentation at the conference.
“Obviously, I think there are customers who chose them for that, but now they have got them,” he said. “We continue to implement multiple changes to our products, so we'll see how it will unfold in the next period. Of course, for our customers, it's probably good for a seat that many business travelers have been assigned to.
| Ticker | safety | last | change | change % |
|---|---|---|---|---|
| Luv | Southwest Airlines Co. | 30.10 | -0.46 | -1.52% |
| Dal | Delta Air Lines Inc. | 45.30 | -1.38 | -2.96% |
| ual | United Airlines Holdings Inc. | 72.46 | -3.60 | -4.73% |
On Tuesday, Southwest also said that “lowest price tickets” purchased after May 28 have new basic fares.
The carrier previously showed plans to begin seat allocations and offer premium seat options on all flights, as well as departures from opening seats and all economic class cabins.
Southwest CEO Bob Jordan said at a meeting Tuesday that the company's efforts to introduce assigned and premium seats were “both technology and fleet modifications.”
He said the company will “refine the scheduled sales dates for these products in the third quarter of this year and will begin operations in the first quarter of 2026.”
