Southwest Airlines is Stuck. It might be (rhymes with stucked) too.

Southwest announced it was eliminating its longstanding policy of not charging for checked bags, one of its core brand propositions and the theme of a longstanding (and trademarked) campaign, “Bags Fly Free”.

So much for brand differentiation, not to mention the brand it self.

Echoing research cited in VML’s Future 100 2025 report that revealed 72% of consumers fail to see brands as differentiated, SW decided to be just like the rest of the industry, adding basic economy tickets and a plethora of fees, among other changes announced and forthcoming.

Like Nordstrom, which long ago abandoned its pricing discipline of two sales per year and to be more like the rest of its industry, Southwest is desperate to turn its business around.

Good luck.

It did not work for Nordstrom, now desperately trying to take itself private (again) with the belief that it will return to its past legendary glory.  Southwest similarly believes that following, rather than leading, will solve its problems.

Southwest had the enviable position of competitive pricing, typically at parity with full-service competitors, and the differentiation of its cabin (open seating) and loyalty features like its companion pass.

According to The Wall Street Journal, an outside consultant modeled that it would lose revenue on a net basis versus the fees it would earn for checked bags.  While I’ve seen plenty of consultants miss on models, an admittedly have done the same (though almost universally underestimating the gains through conservatism, often client-imposed), I’m willing to bet on the consultants in this case, rather than Southwest and its board.