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SouthwestAirlines' New Boarding Policy Sparks Industry Backlash

Yahoo Finance •
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Southwest Airlines has implemented a boarding policy that Delta and United passengers find particularly hateful, marking a significant shift from its traditional open seating approach. The airline now assigns seats and charges for checked bags, which has led to forced gate-check policies even when overhead bins aren't full. This change, driven by the need to improve boarding efficiency and offset lost revenue from free bags, has drawn criticism from travelers accustomed to Southwest's historically relaxed rules.

The operational shift stems from the airline's recent elimination of its "bags fly free" policy and transition to assigned seating. Once passengers must pay for checked luggage, many opt for carry-ons, increasing the number of bags on board and slowing boarding. To counteract this, Southwest has quietly adopted a gate-check policy similar to competitors like American Airlines, Delta, and United, where passengers in later boarding groups are told bins are full even when space exists. This practice, while speeding up turnaround times, has angered customers who feel misled.

Southwest's financial performance has benefited from these changes. The airline reported record fourth-quarter revenues of $7.4 billion and $574 million in EBIT, with CEO Robert Jordan attributing gains to the new seating and pricing initiatives. However, the forced gate checks represent a stark departure from Southwest's brand identity, potentially alienating loyal customers who valued its no-fee baggage and open seating. The policy underscores a broader industry trend where legacy carriers' operational efficiencies are being replicated by low-cost competitors seeking to maximize revenue from ancillary services.

Quick Fact: Southwest charges $35 for the first checked bag and $45 for the second checked bag.