Bags fly free policy could cost Southwest Airlines in unexpected way

Southwest Airlines has made its bags fly free policy a core part of its branding and a way to differentiate itself from other US airlines. And while the carrier willingly trades the extra bag fee revenues it could earn in favour of increased customer loyalty, a new study shows the policy could be costing the company in a less obvious way: on-time departures. The study tracked the impact airlines’ decision to charge for checked bags had on operational performance, as more people carried on their bags and travelled with less luggage overall. It found that even with more people carrying on bags to avoid the fees — creating a logjam as people jostle for overhead bin space — that extra time boarding was outweighed by the time saved from having to process and load fewer checked bags into the plane. <br/>