Southwest Airlines will charge to check bags for the first time

Core Viewpoint - Southwest Airlines will begin charging passengers for checked bags, marking a significant shift in its long-standing policy of offering this service for free, which was a key differentiator from competitors [1][4]. Group 1: Company Changes - The decision to charge for checked bags comes after pressure from activist investor Elliott Investment Management, which acquired a stake in the airline and secured five board seats to advocate for rapid changes [2]. - Starting from May 28, passengers purchasing tickets will have to pay for checked bags, with exceptions for elite frequent flyers and Southwest credit card holders who will still receive complimentary checked bags [3]. Group 2: Industry Context - This policy change aligns Southwest with other major U.S. airlines, which collectively earned $5.5 billion from baggage fees last year, according to federal data [4]. - Historically, Southwest executives emphasized that the free checked bag policy was a primary reason customers chose the airline, indicating a shift in strategy as the company adapts to competitive pressures [5].