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S18E5: Southwest Ends Free Bags - Last Day to Get Yours! (Market Outsiders: May 27, 2025)
Description
Southwest Airlines is officially ditching its hallmark “bags fly free” policy—and today is your last chance to book a flight under the old rules.
In this episode of Market Outsiders, Namaan and Jenny Rae dive into the business strategy behind Southwest’s seismic shift. Why abandon a decades-old differentiator? Is this a savvy financial play or a risky move that could alienate loyal customers?
The duo breaks down:
- What this change means for Southwest’s operational model and turnaround times
- The economics of bag fees vs. base fares and why airlines love ancillary revenue
- How the airline’s pivot might boost its under-leveraged credit card business
- What metrics analysts should watch post-policy shift—especially during peak summer travel
Plus, a fun detour into Uno’s resurgence and the surprising business of board games.
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Additional Resources
- Listen to a Business Breakdown of Southwest
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