Southwest Makes A Big Change

Southwest continues to find ways to transform itself and raise revenues as it restructures itself for a more stable future.

Following several other landmark announcements regarding its daily flying, Southwest has confirmed it will begin charging some customers for checked baggage.

The policy shift is not the first in a string that is seeing the company shift away from being a bare-bones low-cost unit. Instead, Southwest is looking to focus on what customers want in today’s industry while also finding means to raise revenues.

Since its launch, Southwest has created one of the most iconic brands in the United States. Much of that has been achieved through the established way the carrier handles itself and its customers.

Starting from a napkin, Southwest has had a no thrills type of flying experience, but that will change. The changes are driven by the airline reporting some far from optimal financial performances across recent times.

Southwest will implement the latest policy on May 28, ending a privilege the carrier was known for and implementing the previously announced end to an open seating model.

While Southwest has sought to cater to its customers’ desires and be considered a passenger-friendly airline, this approach has sometimes received some pushback, especially in an era of uncertainty surrounding financial performance.

Those who have criticised the airline, including some investors, believe that while Southwest has been known for its way of operating for 50 years, things evolve, and passengers’ requirements will not be what they once were.

As a result, the company must emphasise raising revenues internally, believing that this can be done with some beneficial long-term changes to the business.

Profits are expected to increase with changes such as what’s occurring with baggage. This is precisely what the company hopes will happen to better align it with the billions of revenue being brought in by other U.S. carriers also charging for baggage.

While this change will see Southwest move away from a customer-first approach, the airline does firmly believe this is the right direction to take if it wants to remain competitive and be around for decades to come.

Other Changes At Southwest

Baggage policy changes are just one of the many adjustments that Southwest has already announced in a bid to restructure its approach and increase profits to ensure stability.

The airline confirmed last year that it was entering a new era, saying it would move towards assigned seating and offer premium seating options on every flight.

After thorough research led by testing, the company remains confident that this enhancement will meet expectations but, more importantly, not compromise the airline’s operational efficiency.

As part of the research, 86% of future and 80% of existing customers for the airline reported a preference for assigned seating over the open seat policy.

Southwest will also offer premium seats with extended legroom in a portion of the cabin. After a thorough review, the U.S. carrier will roll out this change as another of many to the inflight experience.

One of the most extensive changes concerns red-eye flights. The airline confirmed it’d move towards a 24-hour operation aimed at enhancing its overall asset utilisation and maximising its capabilities.