Southwest Airlines will soon start charging for checked bags

Caroline Woods brings you the biggest news of the day, including why Southwest Airlines is changing its stance on free bags.

Transcript

00:00After nearly six decades of service, Southwest Airlines is officially getting rid of something its customers love, free checked bags.

00:08The airline announced it will begin charging for the first and second checked bag.

00:12On the decision, Southwest CEO Bob Jordan said,

00:15We have tremendous opportunity to meet current and future customer needs,

00:19attract new customer segments we don't compete for today,

00:22and return to the levels of profitability that both we and our shareholders expect.

00:27Free checked bags have been so synonymous with Southwest that the slogan,

00:31Bags Fly Free, became part of its advertising.

00:34Despite the mantra, Southwest brought in $73 million in baggage fees in 2023,

00:40according to the Department of Transportation.

00:42However, that pales in comparison to other airlines.

00:45American Airlines raked in $1.4 billion that same year,

00:49with Delta and United each collecting roughly $1 billion.

00:53Southwest's new baggage fees go into effect on May 28th.

00:57That'll do it for your daily briefing from the New York Stock Exchange.

01:00I'm Caroline Woods with The Street.