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Southwest’s Profit Slides, But New Baggage Fees Start to Pay Off Southwest Airlines reported a 42% drop in net income for the second quarter, with operating revenue down 1 5% The airline's new baggage fees, introduced in May, are exceeding revenue expectations
Southwest Airlines Ends Free Checked Bags Policy Southwest Airlines Introduces Paid Baggage Policy to Boost Revenue Southwest Airlines announced on Tuesday that it will begin charging certain customers for checked baggage, thereby discontinuing a distinctive policy that previously allowed free checked bags This decision comes in response to the airline's disappointing earnings, which have intensified the need to revise its business
Southwest Says Profit Fell, But New Baggage Fees Are Paying Off Baggage Fees Are Delivering Southwest launched charged baggage fees on May 28—its first foray into such charges after over 50 years of offering two free bags per passenger Despite potential customer backlash, expectations are that the initiative will bolster earnings by $400–430 million in 2025 R
Southwest Airlines Ditches Free Bags: How Paid Fares Boost Profit The introduction of paid baggage fees is just one example of this trend By charging passengers for checked bags, Southwest Airlines can generate additional revenue and boost profits According to industry estimates, the average American passenger checks two bags per flight, generating approximately $15 in revenue per passenger