Competitors are circling Southwest after the airline announced it's going to start charging for checked bags
Portfolio Pulse from
Southwest Airlines is ending its free baggage policy, which has prompted competitors like United and Delta to see potential opportunities. The CEOs of United and Delta discussed the implications of this change.
March 12, 2025 | 6:30 am
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POSITIVE IMPACT
Delta Airlines may gain a competitive edge as Southwest ends its free baggage policy, potentially attracting more customers.
Delta could capitalize on Southwest's policy change by attracting customers who prefer airlines with better baggage policies, enhancing its competitive position.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
United Airlines sees potential opportunity as Southwest ends its free baggage policy, possibly attracting more customers.
With Southwest ending its free baggage policy, United may attract customers seeking better baggage deals, potentially boosting its market share.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
Southwest Airlines is ending its free baggage policy, which could impact its competitive edge and customer satisfaction.
Southwest's free baggage policy was a key differentiator. Ending it may lead to customer dissatisfaction and loss of competitive advantage, potentially impacting stock negatively.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100