Too Early to TellFees
Bob Jordan, CEO: “Ending free checked bags will generate $1.5 billion per year in new ancillary revenue.”
Southwest · March 15, 2024 · Investor Presentation
The Promise
“Ending free checked bags will generate $1.5 billion per year in new ancillary revenue.”
Bob Jordan, CEO · March 15, 2024 · Investor Presentation
Target
Metric: Ancillary bag revenue
Target: $1.5 billion/year
Deadline: December 31, 2026
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What Actually Happened
Verdict:Too Early to Tell
Bag fees launched May 2025 at $35/$45, then increased to $45/$55 in early 2026. Southwest estimated it would also lose $1.8 billion in business from loyal customers who chose Southwest specifically for free bags. Net revenue impact is still being evaluated.
Actual result: Fees implemented; $1.8B projected customer loss offsets gains
Source: Southwest financial reports, CNN, CBS News (checked Jun 2026)
Timeline
March 15, 2024
Promise made by Bob Jordan, CEO via Investor Presentation
December 2026
Stated deadline
June 2026
Evidence checked — Too Early to Tell
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