SOUTHWEST Airlines’ CEO is pushing forward despite backlash over a new $45 fee as the brand continues its transformation.
Last month, Southwest ended its popular “two bags fly free” policy with a $35 fee for a first checked bag and a $45 fee for a second bag.
Southwest Airlines has gotten rid of its popular bag policy but is still pushing forward[/caption]
CEO Bob Jordan has said that the company is overhauling many of its policies[/caption]
All loyalty members and credit card holders will get their first checked bag for free.
“Whatever customers need in 2025, 2030, we won’t take any of that off the table,” CEO Bob Jordan told CNBC on Wednesday.
“We’ll do it the Southwest way, but we’re not going to say ‘We would never do that.’”
Jordan added that some people choose not to fly with Southwest because it doesn’t have “things like lounges, like true premium, like flying long-haul international.”
The company began overhauling its business model over the last few months following the change in passengers’ spending habits since the pandemic.
Many budget airliners are also feeling the effects of increased fuel and labor costs, forcing them to make major changes in business practices.
Southwest announced last July that it would end its open-seating policy, encouraging customers to pay to choose their seats with an extra fee for upgrades such as more legroom.
However, Jordan said in the interview that the airline is seeing cheaper fares despite the summer travel season.
“The summer is generally never on sale, and the summer is heavily on sale right now,” he said.
He added that despite the changes the company has made, the carrier hasn’t seen customers turning to other airlines.
Southwest isn’t alone in these changes, Jordan said, as competitors such as Delta, United, and American Airlines have added more luxury tourism destinations and roomier, more expensive seats.
The other airlines have also invested in airport lounges, as just this past week, American announced plans to double its lounge space at Miami International Airport.
Meanwhile, Jordan said it’s “way too soon to put any specifics” on possible changes, but called out Southwest’s hub at Nashville International Airport as a place where customers could turn.
“Nashville loves us, and we know we have Nashville customers that want lounges,” he said.
“They want first class. They want to get to Europe, and they’re going to Europe.”
However, getting those things would mean customers booking with other airlines.
“I want to send fewer and fewer customers to another airline,” said Jordan.
Southwest also called on the Department of Transportation for permission to fly to any of the 100-plus countries within the US’ Open Skies agreement.
The company said that if granted, it would “promote competition and increase the traveling public’s ability to access Southwest’s high-quality, low-fare service.”
Jordan hinted that there could be a time when Southwest could serve “long-haul destinations like Europe.”
“Obviously you would need a different aircraft to serve that mission, and we’re open to looking at what it would take to serve that mission,” he said.
He hinted at the possibility of the airline having longer international flights[/caption]
Still the airline has seen cheaper rates despite the busy travel season[/caption]
