Southwest Airlines recently announced its latest major change with the abrupt ditching of its much-loved “Two bags fly free” policy. It’s a move that CNBC described as “a stunning reversal” of a customer promise that set Southwest apart from rivals for more than half a century and will result in most customers getting charged for checked bags from May. But this is just one of a slew of dramatic changes that the carrier is implementing at the behest of its activist shareholders.
After Elliott Investment Management took a nearly 20% stake in the airline last year and won five board seats, it has pushed aggressively for quick changes at the company to increase its profitability. The number, speed, and reach of these changes have been so extensive that they might be a blur to Southwest fliers. So let’s unpack the big shifts at Southwest, all the changes that you can expect at the carrier in the months ahead, and the likely impacts on both travelers and the industry at large.
Changes to the Southwest fare types To understand the extent and impact of the changes, you first need to understand the four fare types that Southwest has historically offered. Unlike other airlines where higher fare classes offer perks such as larger seats or more legroom, Southwest has no premium classes and seats have all been the same. So the four fare classes are about paying for increased benefits and flexibility: Wanna Get Away: The base fare and most affordable option for those looking fo.