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Southwest Airlines Will Start Charging For Checked Baggage From May 28

1. Southwest will charge for checked luggage after May 28, 2024. 2. Two free bags for 'A-List Preferred' and 'Business Select' ticket holders only. 3. New basic fare tier introduced, limiting customer perks further. 4. These changes aim to enhance revenue and profitability for Southwest. 5. Historically, baggage fees have been a significant income stream for airlines.

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FAQ

Why Bearish?

This policy shift could alienate loyal customers. A similar move by airlines historically led to initial backlash and stock declines.

How important is it?

The shift from a long-standing competitive advantage to a more conventional model will likely impact sentiment and profitability.

Why Short Term?

Immediate reactions to the policy will manifest in stock price changes, especially as May 28 approaches.

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