Southwest Airlines Co. Announces Changes to Baggage Policy and Participates in Key Industry Conferences
Southwest Airlines Co. (NYSE: LUV), a leading domestic airline known for its short-haul, high-frequency, and point-to-point services, has recently announced significant changes to its baggage policy. As of May 27, 2025, the airline will begin charging customers for checked luggage, marking a departure from its longstanding “bags fly free” policy. This change positions Southwest as the last major U.S. carrier to introduce checked bag fees. Customers will now be charged $35 for the first checked bag and $45 for the second, as reported by The Wall Street Journal and confirmed by Reuters.
This policy shift comes amid broader industry trends, as noted in a report by TheStreet.com. The airline sector has faced challenges, with Delta Air Lines recently lowering its 2025 guidance due to recessionary concerns. Despite these challenges, there is a growing projection of a rally in the airline industry.
In addition to the policy change, Southwest Airlines is actively participating in several key industry conferences. On May 28, 2025, Southwest’s CEO Bob Jordan hosted the Bernstein 41st Annual Strategic Decisions Conference, where he discussed the airline’s strategic direction. Furthermore, Southwest has been invited to speak at the TD Cowen Future of the Consumer Conference and the Bernstein Strategic Decisions Conference, with both events offering live webcasts accessible via the airline’s Investor Relations homepage.
Financially, Southwest Airlines closed at $32.89 on May 27, 2025, with a market capitalization of $17.79 billion. The company’s price-to-earnings ratio stands at 37.47, reflecting investor sentiment and market conditions.
As the airline industry navigates economic uncertainties, Southwest’s strategic engagements and policy adjustments highlight its efforts to adapt and maintain competitiveness in a dynamic market environment.