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Southwest Airlines plans to start charging for many passengers’ checked bags, a seismic shift that will boost revenue but potentially give its fiercely loyal passengers a reason to shop around, Alison Sider and Dawn Gilbertson write.
Checked bag charges and basic economy tickets have been standard at other airlines for years, but Southwest resisted them as too punitive.
“Bags fly free” was a policy so sacrosanct that Southwest trademarked the phrase and devoted a section of a book celebrating its 50th anniversary to it.
As recently as September, executives were steadfast in defending their bag policy, describing it as a critical “moat” that set Southwest apart from rivals.
The capitulation reflects how industry dynamics have shifted: The airline that once upended industry norms is now facing pressure to adopt them.
Related: Delta lowered its first-quarter outlook, citing reduced consumer and corporate confidence and economic uncertainty. [WSJ]
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