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Southwest Airlines LUV has begun charging for checked bags as of May 28. LUV was the only major U.S. airline that allowed customers to check in two bags at no cost. JetBlue Airways JBLU and United Airlines UAL inked a partnership to expand customer benefits, loyalty rewards, and travel options across the networks of both carriers. United Airlines was also in the news when it inked a tentative pay-related labor deal with its multiple flight attendants. An expansion-related update from Delta Air Lines DAL was also available in the past week.
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Recap of the Most Recent Important Stories
1. Southwest Airlines’ decades-long "two bags fly free" era has come to an end. The carrier began charging certain customers $35 for their first checked bag and $45 for their second on flights booked on or after May 28. LUV’s new bag fees apply to its Basic, Wanna Get Away Plus, and Anytime fares. Rapid Rewards A-List Preferred Members and customers traveling on Business Select or Choice Extra fares will still be able to have two free checked bags. Standard A-List Members and Rapid Rewards Credit Card Members will get one free bag. Lackluster results lately have increased pressure on LUV to revamp its business as it strives to raise its operating margin to at least 10% in 2027 from 2% in 2024.
2. United Airlines inked a provisional agreement with its flight attendants’ union, Association of Flight Attendants-CWA. The union covers about 28,000 attendants at the Chicago-based carrier. The final contract language will be finalized shortly. The agreement, if approved by the union’s Master Executive Council, will be put forward for ratification by flight attendants. The deal will materialize only if the ratification outcome is favorable. The deal, on becoming effective, will make flight attendants eligible for significant gains in compensation apart from ensuring a better work-life balance.
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3. In a customer-friendly move, JetBlue and United Airlines launched a loyalty-focused partnership. The initiative called “Blue Sky” enables passengers to earn and redeem loyalty points across both carriers, with shared access to preferred seating, standby options and simplified booking through each carrier’s website and app. Specifically, UAL will move its website and mobile app’s ability to sell hotels, rental cars, cruises, and travel insurance, on both a stand-alone and package basis, to the new technology and services offered by JetBlue’s Paisly platform.