Southwest Airlines once held a reputation as a customer-friendly airline, offering reasonable fares without the hidden costs often associated with air travel. Its boarding system, although somewhat chaotic, was considered democratic by many passengers. The airline was favored for its limited additional fees, where advertised prices closely matched what travelers paid. While there were options such as early check-in for an additional cost and a premium “business” boarding option, perks like free baggage and complimentary non-alcoholic beverages were included.
In 2023, Southwest Airlines, listed under the ticker symbol LUV on the stock market, began to deviate from this model. Initially, it introduced an $8 WiFi charge per flight segment instead of the previous $8 charge for the entire day. This seemingly minor change introduced an additional fee for passengers making connections, an alteration that could irritate customers without significantly increasing revenue.
The airline’s policy shifts did not stop there. By May 28, Southwest plans to eliminate its “bags fly free” policy and intends to phase out its open boarding system in the latter part of the year. Once these changes take effect, Southwest will become comparable to other airlines, imposing charges for seat assignments and baggage. Just as the airline seemed to be stripping away its distinguishing features, additional changes further aligned it with the broader industry.
One significant shift involves the expiration of flight credits. Previously, Southwest allowed credits to remain valid indefinitely, providing infrequent travelers with the assurance that unused funds could eventually be applied to future travel. However, the airline’s new policy states that flight credits from reservations made or altered on or after May 28, 2025, will have expiration dates, requiring travel to be completed by those dates.
Southwest Airlines also restricts the transferability of flight credits, though this is not a recent change. “Wanna Get Away” fares receive non-transferable credits, whereas credits for “Business Select,” “Anytime,” and “Wanna Get Away Plus” fares can be transferred to others.
Despite these changes, Southwest Airlines continues to emphasize a positive outlook. During a fourth-quarter earnings call, CEO Bob Jordan described 2024 as a “foundational year,” highlighting investments in operational efficiencies and labor contracts, as well as the implementation of the “Southwest Even Better” plan. The plan aims to enhance efficiency and reduce costs, partly by offering redeye flights to optimize aircraft utilization.
However, behind the scenes, more contentious negotiations took place with the airline’s pilots, resulting in a new contract that provides cost certainty. Despite the challenges, the introduction of redeye flights will offer passengers more travel options.
Ryan Greene, the Chief Transformation Officer, indicated that the company remains committed to withdrawing from its open seating plan to boost profitability. He affirmed the company’s progress in launching assigned and premium seating, targeting a rollout beginning in the second half of the year, with full implementation in the first half of the next year.
