#Brandloyalty

Southwest Airlines’ recent decision to end its iconic “bags fly free” policy in favor of $35 and $45 fees for checked bags has sparked controversy, demonstrating the high cost a brand can incur by ignoring fundamental consumer psychology, according to new analysis from Forbes. The abrupt policy shift, effective Wednesday, is anticipated to raise revenue by $1–1.5 billion but may cost the airline as much as $1.8 billion in lost market share, raising doubts about the long-term wisdom of the move (Forbes).

Southwest Airlines recently ended its long-standing “bags fly free” promise, introducing $35 and $45 fees for checked bags. The move, effective immediately, aims to boost revenue by about $1–1.5 billion but could cost the airline as much as $1.8 billion in market share losses. In short, the policy change may deliver a short-term gain at a potentially steep long-term cost, according to an analysis by Forbes.

This issue resonates beyond airlines. It highlights how businesses must balance immediate financial pressures with the trust and fairness that underpin customer loyalty. Southwest built its identity on hassle-free travel and clear pricing, and the abrupt shift challenges that image.