South
Southwest Airlines ends era of free checked bags as profit pressures mount
Kaltbaum Capital Management President Gary Kaltbaum analyzes Nvidia and Southwest Airlines on ‘Varney & Co.’
Southwest Airlines is ending its long-standing policy of free checked bags and introducing a new basic fare on Wednesday as the carrier aims to attract new customers and boost profitability.
Most passengers will be charged $35 for their first checked bag and $45 for their second checked bag for flights booked and or changed on or after Wednesday, marking a major shift in its customer-friendly pricing model.
Still, Southwest, considered a “no-frills” carrier, said Rapid Rewards A-List Preferred members and customers traveling on Business Select or Choice Extra fares will receive two free checked bags for up to eight additional passengers traveling on the same reservation. Additionally, A-List Members and Rapid Rewards Credit Cardmembers will get one free checked bag as the carrier aims to encourage more people to join its loyalty program.
The carrier is simultaneously launching a new basic fare, which will be its cheapest but least flexible fare.
SOUTHWEST ENDING ITS OPEN SEATING POLICY
Travelers use a Southwest Airlines Co. self-check-in kiosk at Logan International Airport in Boston on Friday, July 19, 2019. ( Scott Eisen/Bloomberg via Getty Images / Getty Images)
CEO Bob Jordan said the changes, announced in March, are part of an effort “to meet current and future customer needs” as well as “attract new customer segments we don’t compete for today.”
However, unlike rival carriers, Southwest upheld a policy allowing passengers to check free bags, appealing to a wide range of budget-conscious travelers. The policy, along with open seating, helped the carrier distinguish itself as one of the first to adopt and maintain its low-cost model. However, in recent years, financial challenges have forced the airline to reevaluate its approach.
SOUTHWEST AIRLINES EXITS MULTIPLE AIRPORTS AS BOEING TROUBLES WEIGH
Southwest Airlines Boeing 737-700 aircraft as seen landing at dusk at Ronald Reagan Washington National Airport. (Getty Images / Getty Images)
To drive more revenue growth, Southwest announced in July that it would begin offering assigned seating and offering premium seating options on all flights – a move designed to boost profits by charging higher rates for premium seats across its entire network. The carrier has maintained a single economy-class cabin with open seating assignments for more than 50 years.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| LUV | SOUTHWEST AIRLINES CO. | 32.66 | +1.71 | +5.53% |
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Reservations for flights with assigned seats are expected to start in the second half of 2025 for flights operating in 2026.
Later this year, the company will change the fare classes as well. In the third quarter of 2025, customers will choose between Choice Extra, which was formerly Business Select, Choice Preferred, formerly Anytime, and Choice, formerly Wanna Get Away Plus. The new fares will also have new seat options: Standard, Preferred and Extra Legroom, which will cost extra.
Southwest is working to gain more customers and increase revenue while navigating a complex landscape. The carrier withdrew its financial forecast last month because of economic uncertainty stemming from tariffs. It didn’t reaffirm its previous forecast of $1.7 billion in earnings before interest and taxes in 2025 and its outlook of about $3.8 billion in 2026.
Reuters contributed to this report.
Dallas, TX
Redesign debate intensifies as Dallas convention center faces costly delays
To redesign the Kay Bailey Hutchison Convention Center or not?
That’s the decision Dallas City Council members will face this week. The redesign is under consideration because the current plans would cut off access to the Jefferson Viaduct, affecting drivers coming from Oak Cliff.
City Manager Kimberly Tolbert is urging the council to vote against the redesign. Tolbert announced earlier this week that changing course would delay the project into 2030 and create significant economic impacts.
“Since we closed the center in 2025, we’ve lost 3,000 associated jobs from not having a fully functioning,” said Craig Davis, Visit Dallas CEO.
A redesign would cost nearly $600 million. Davis said the city stands to lose $1.5 million each month in anticipated hotel tax revenue during the closure, which was already expected to last through 2029.
“Then any potential delay past that is going to get exponentially worse. There’s reputational damage that’s taking place because we’ve moved groups that we had promised,” Davis said.
The City Council is expected to vote on the redesign on Wednesday.
Miami, FL
‘An insane memory’: New World Cup super hero plays in Miami but not with Messi
Curacao better make some room for a new national super hero.
Eloy Room delivered for his tiny Caribbean nation one of the finest performances in World Cup history on Saturday night, making 15 saves against a relentless Ecuador attack and helping The Blue Wave earn its first-ever point with a 0-0 draw against La Tri.
The outcome also allowed Germany, which beat Ivory Coast earlier in the day, to clinch Group E.
“It’s going to be an insane memory,” said Room, who plays for USL Championship club Miami FC. “You don’t think about it when you do it but of course it’s going to be something you look back to. For me as a goalkeeper, this is almost a perfect game.”
The 37-year-old Room, whose shutout of Jamaica last November sent Curacao to its first World Cup, bounced back in historic fashion from a 7-1 loss to Germany. His save total was one shy of the record — since saves became an official stat in 1966 — of 16 set by Tim Howard of the U.S. against Belgium on July 1, 2014, in a game that Room remembers watching.
Howard needed 120 minutes for his total, though. Nobody has made more saves than Room without extra time.
“I think I need a statue in Curacao now,” he said with a smile.
The draw doesn’t eliminate either team from knockout play, but it put Ecuador in dire shape going into its group finale. Those matches take place Thursday with Curacao facing Ivory Coast in Philadelphia and Ecuador playing Germany in New York.
“Well, there are things you cannot explain in football,” Ecuador coach Sebastian Beccacece said. “We wanted to win. We didn’t do it. I am the one who bears responsibility, and I told my team, ‘If you’re giving it all, competing, I have no complaints.’
“As long as we are alive, we will continue to give it our all. We are very united. We are like a family. No one said it would be easy.”
Ecuador certainly had a home-field advantage Saturday night at the home of the Kansas City Chiefs. Its fanbase, dressed like its players in bright yellow shirts, filled the stadium to the brim, making it look like a convention of Minions. There was only a couple of small pockets of blue-clad Curacao fans in a stadium whose capacity could house half of its island citizenry.
Among those in the crowd were Kansas City Royals players Bobby Witt Jr., Salvador Perez and Starling Marte.
And King Willem-Alexander and Queen Maxima of the Netherlands, who began a memorable day in Houston cheering the Dutch past Sweden, then flew to Kansas City to watch a constituent country within the Kingdom of the Netherlands make history.
“They were even dancing in the locker room to our music,” Room said. “That’s unreal that they witnessed this game.”
The pressure mounted on Ecuador earlier Saturday, when Deniz Undav’s goal in stoppage time lifted Germany to a 2-1 win over Ivory Coast. The outcome of that match in Toronto meant that La Tri faced World Cup elimination with a loss to The Blue Wave.
Curacao made sure the pressure continued once play began.
Throughout the first half, 78-year-old coach Dick Advocaat’s team kept finding seams through the middle of Ecuador’s defense, and that created open looks at the goal. But each time, Curacao would end the runs with a sloppy pass or a shot wide of net.
Ecuador wasted its best scoring chance in the opening minutes, when World Cup veteran Enner Valencia found nothing between him and the goalkeeper. But Room guessed right, dived to his left and deflected the shot to keep the game scoreless.
“For us it’s no shock,” Curacao midfielder Tahith Chong said. “We’ve gotten used to Eloy doing these unbelievable saves.”
The pressure of La Tri picked up in the second half — and each time, Room was standing in the way.
Moises Caicedo forced him into making a spectacular save early on, then Valencia did the same with a well-placed header that Room knocked wide. On the ensuing corner kick, Room made two more sensational saves before Curacao finally cleared it.
Ecuador wound up taking 27 shots to just 10 for Curacao. Ten of the 15 saves Room made were inside the box.
It was that kind of special night for him. And that kind of frustrating night for Ecuador.
“The team deserved more than they got,” Beccacece said, “and I am the one who is responsible for that.”
Atlanta, GA
Atlanta sees great value in Swain at No. 23,
I’ve also heard that Atlanta sees great value in Swain at No. 23, but the Hawks have been signaling for some time that they are prepared (and perhaps even prefer) to trade their second pick in the first round after No. 8 for future draft capital. It sounds as though Atlanta will invite external trade interest for that pick until it is actually on the clock to make the selection Tuesday night.
marcstein.substack.com
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