Southwest takes the luv out of flying | Coffee Break Ep48 | 3-11-25
Mar 11, 2025
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Southwest Airlines is shaking things up with major policy changes coming this May. Most travelers will lose free checked bags, and a basic economy fare is being introduced. Flight credits will soon expire, which raises concerns among frequent flyers. Points redemption values are set to become more variable, leaving many wondering how this will affect their loyalty. The shift from customer-friendly policies could signal a troubling trend for the airline's unique appeal, making travelers reconsider their flying experience.
Starting May 28, 2025, most Southwest customers will lose free checked baggage, altering the airline's appeal and customer loyalty.
The introduction of basic economy fares and variable redemption rates signals a shift in Southwest's pricing strategy, complicating the travel experience for customers.
Deep dives
Elimination of Free Checked Bags
Starting on May 28, 2025, Southwest Airlines will no longer offer free checked baggage for most customers, marking a significant shift in their longstanding policy. Previously, customers could check two bags for free, which was a major draw for many travelers. Now, only A-list preferred members and those purchasing business select fares will retain this benefit, complicating the experience for regular customers. This change undermines the airline's previous commitments to its customers and could lead to a loss of loyalty among those who historically preferred Southwest for its customer-friendly policies.
Introduction of Basic Economy Fares
The introduction of basic economy fares will bring new restrictions and alter customers' experiences significantly. While details remain limited, it is expected that customers purchasing basic economy tickets may face issues such as a lack of assigned seating, similar to practices already seen with other airlines. Additionally, if a customer cancels a basic economy ticket, they will receive a credit that expires in six months, significantly less forgiving than the previous policy where credits did not expire. This move is another step in Southwest's transition away from the competitive advantages it once held in the airline market.
Unpredictable Points Redemption and Future of Companion Pass
Changes are also set to affect the redemption value of points, as Southwest plans to implement variable rates based on flight demand, complicating future bookings for loyal customers. The unpredictability of points value is particularly concerning for those accustomed to a straightforward redemption process tied to cash prices. Despite these significant changes, the current status of the Southwest Companion Pass remains unclear, leaving customers wary about its potential future elimination. While some speculate it will be retained to attract customers, others raise concerns that it may soon become a liability as the airline aligns itself more closely with competitors.
Starting May 28 of this year, Southwest will be making some major changes to the things we've known and loved. For example Most people will be losing free checked bags on Southwest starting May 28 of this year, they'll be introducing basic economy, flight credits will now expire (after 6-12 months depending on what type of fare you bought) and the value of points will become much more variable.
(01:49) - Commenter Brad says: "I’m an accountant who completely understands the math of cutting expenses or raising revenues to increase profit... I don’t understand, though, what the business strategy is here. Building a strategy that revolves around hoping customers won’t notice you’re charging them more for a worse product doesn’t seem like the kind of pitch that would get you an A in an MBA strategy class."
(03:38) - 2 Bags No longer Fly Free for Most (pricing not yet disclosed)
(05:58) - Basic economy fares
(06:33) - Flight credits will expire (From May 28, 2025)
(08:29) - Variable redemption rates
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Music Credit – Beach Walk by Unicorn Heads
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