It has not been a particularly good month to be a frequent flyer with Southwest Airlines (LUV) .
At the start of March, the Dallas-based airline announced that it was getting rid of its longtime two-bags-fly-free policy. While the formerly very generous baggage policy was a key feature distinguishing Southwest from competitors, the move came as new majority investor Elliott pushed for greater profitability in a restructuring that cost several longtime executives their jobs.
Not just a rebranding: the new Southwest basic fare gives you significantly less
The latest victim of Southwest’s cuts is its base Wanna Get Away Fare. The airline currently has four classes with an increasing number of included features — Business Select, Anytime, Wanna Get Away Plus and Wanna Get Away — but, as first reported by aviation website Simple Flying, will soon be replacing it with one simply called Basic.
While Southwest presented it as a rebranding, the new fare structure that Southwest first announced on March 11 actually sees a number of other cuts.
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While the old Wanna Get Away fare currently on Southwest’s website (the new baggage rule comes into effect on May 28) says that it includes free changes and cancelations, the graphic of the new fare structure has a big ‘X’ under refunds and changes for Basic.
The old fare included free same-day standby allowing travelers to get on a different flight if there are available seats, the new graphic now indicates that this is not included in Basic. While Wanna Get Away allows travelers who cancel their flight to put it toward a flight credit, Basic customers will now lose it outright.
Southwest CEO Bob Jordan has led the airline since 2022 but narrowly avoided losing his job when Elliott started pushing for changes.
Getty/TheStreet
‘We’ve come to realize that we need more revenue’: Southwest COO
Some things that have not changed are loyalty points accrual numbers — two, six, 10 and 14 going up to Business Select — and perks like in-flight internet, free on-board drinks and priority lane access in the higher classes.
“What’s changed is that we’ve come to realize that we need more revenue to cover our costs,” Southwest Chief Operating Officer Andrew Watterson said in an interview when the changes were first announced. “We think that these changes that we’re announcing today will lead to less of that share shift than would have been the case otherwise.”
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All these changes and the bag policy shift in particular have caused significant outcry among customers who felt betrayed and squeezed for extra pennies despite their loyalty. Unless specifically tied to the region or specific routes Southwest offers, many also no longer have a reason to choose it over any other airline.
It didn’t take long for fellow low-cost competitor Frontier Airlines (FRON) to seize on the opportunity with a promotion that ups travelers to a bundle that includes seat selection and one free carry-on bag.
“We’ve always had heart,” Frontier CEO Barry Biffle said in a swipe at Southwest. “Some airlines are walking away from what travelers love, but we’re running towards it. Think of this as the ultimate ‘divorce your old airline’ deal.”
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