KANSAS CITY, Mo. — Southwest Airlines will now charge to check bags for the first time. The airline will also launch basic economy tickets.
This is a big change to the strategy that set the low-cost pioneer apart from its rivals for more than half a century.
The goal is to increase revenue.
The changes come after months of pressure from activist Elliott Investment Management, which took a stake in the airline last year and won five board seats.
For tickets purchased on or after May 28, Southwest customers in all but the top-tier fare class will have to pay to check bags; although, there will be exceptions.
Elite frequent flyers who hold A-list Preferred status will still get two bags and A-List level members will get one free checked bag. Southwest credit card holders will also get one free checked bag.
"Two bags fly free" is a registered trademark on Southwest's website, but the change brings the largest U.S. domestic carrier in line with its rivals.
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