Free bags and non-expiring flying points, two major Southwest Airlines perks and a major differentiator, are gone.
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An article in The Street points out, “Southwest Airlines has decided to become as crummy and passenger-unfriendly as its rivals, which offer fares that come with nothing and market them as giving passengers choice…[it] sacrificed its identity to appease some activist investors.”
This is the way of most of corporate America. Make shareholders happy, and the needs of customers, employees, and other stakeholders will follow—at least that’s the gist of economist Milton Friedman’s famous quote, “The business of business is business.” Friedman advocated business focus on economic performance, period.
This ridiculous posture by Southwest Airlines did what nothing else could do—destroy the brand’s iconic customer service edge over competitors. I’m a bellwether of how this has shifted thinking from paying more to fly Southwest than another airline because of the straightforward perks to viewing them as being just another carrier.
I’m disappointed and amazed at this shortsighted approach, and believe that once the public has “tasted” it for awhile, Southwest will reverse itself—not unlike what happened decades ago when Coca-Cola re-established its classic Coke® formula after public outcries about their new and better-tasting flagship product.
Where is it written that companies can’t satisfy customers, employees, suppliers and other stakeholders while also honoring shareholders/investors? It’s certainly not written in the “Costco Doctrine.” Costco has managed to satisfy the wants and needs of multiple stakeholders, including shareholders and investors, for decades. They’ve built a wonderful customer service reputation along the way and made lots of money doing it.
The truth is that the US was built on the Milton Friedman mindset, so none of this shortsightedness is new. However, in an era where it’s been demonstrated that companies can be enlightened and energize profits at the same time, the almost obsessive adherence to Milton Friedman’s beliefs is baffling.
A Yahoo News article summarizes the changes: “Loyal Southwest Airlines customers were left outraged when the company recently announced plans to drop free checked bag fees. The whole ‘your first two checked bags are free’ perk is one of the main reasons many people loved flying Southwest since it made air travel at least slightly more affordable. After all, every little bit helps in this day and age.”
The article continues, “Unfortunately, the blows from the formerly low-cost carrier keep on coming, as they’re dropping yet another popular flier policy. As View From the Wing reports, as of May 28, 2025, Southwest is ending its ‘travel credits don’t expire’ policy. Travel credits will expire 12 months from the date of ticket purchase. And if you booked a basic economy fare? Those credits will expire a mere 6 months after the ticket purchase.”
Years ago, I penned a post giving sky-high praise to Southwest Airlines. It’s entitled, “I Luv Southwest Airlines.” I gave extremely high kudos to the flight crew, noting, “I have just returned from a lovely 6-day tropical paradise, topped off by one of the most enjoyable flights (if not the most enjoyable) I’ve ever taken. Southwest Airlines gets it. That’s why they continue to fly sky high while many other airlines flail and fail.”
The post continues, “That’s why I’d rather pay to fly on Southwest than fly free on United. Southwest treats you right with just about everything they do, from fair pricing policies to top-notch customer service…Obviously, the most up close and personal customer facing Southwest representatives are the flight crews…This particular flight crew charmed from the get-go.”
Alas, a stellar customer service policy that featured fair pricing, free bags, and customer service-plus crews has now been greatly compromised. It remains to be seen if personality-plus personnel can compensate for some of the lost ground.
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Mark Lusky Communications helps companies that honor customers, workers, communities, the environment, and stakeholder governance tell their story to the world. Interested? Let’s talk.
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