Southwest Airlines Making a Pricey Change Passengers Won't Like

The airline has picked a pretty bad time to make a decision that's not very customer friendly.

Southwest Airlines (LUV) - Get Free Report built its business on being customer-friendly. The company tried to fix the pain points that other airlines made a major part of their business model.

The low-cost carrier didn't charge baggage fees and made it much easier to make changes to your flight than its rivals. Southwest also used straightforward pricing making it easy for people to know their actual costs rather than using a low price upfront then tacking on added fees as rivals including Delta Airlines (DAL) - Get Free Report and United Airlines (UAL) - Get Free Report routinely do.

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Southwest built its reputation on being low-cost, but not cheap when it comes to how it treats people. This isn't Spirit (SAVE) - Get Free Report or Frontier Airlines (ULCC) - Get Free Report which both use mostly unpadded seats because it makes the plane lighter costing them less in fuel.

In many ways, Southwest was something unique. It charged reasonable prices and threw in things that seem like they should be included like non-alcoholic drinks and basic snacks (Spirit and Frontier charge for those). It also built a reputation for having friendly staff that went out of their way for passengers.

Some of those things, of course, still exist, but the airline has done a lot of damage to its reputation. And now, whIle the airline is still apologizing for its holiday meltdown and is dealing with an unhappy pilots union, Southwest plans to make a pricing change that seems like something only its competitors would even consider doing.

Southwest Making a Big Change to Its Internet  

Southwest only charges for a few extras after you buy a ticket. You can purchase "Early-Bird Check-in," which automatically checks you into your flight 24 hours before takeoff and you can pay for Business Select seating which gets you a position among the first 15 non-preboard customers boarding the plane.

You also get charged extra for alcoholic drinks on the plane and one other thing -- in-flight internet service. Currently, Southwest charges $8 per day for one non-transferrable device connection (meaning that if you sign up on your phone, you can't switch your connection to your laptop).

That gave passengers 24 hours of access. Whether you have one connecting flight or multiple, your internet traveled with you.

Now, it has been leaked that Southwest plans to make a major, very passenger-unfriendly change to how it charges for internet access.

"Effective Tuesday, February 21, onboard internet will be purchased per-leg, from 'Takeoff to Landing,' rather than our current per-day, DayPass. Southwest Customers who hold A-List Preferred status can continue to access onboard internet free of charge," the airline shared in a statement to TheStreet.

The airline made an effort to explain the change.

"Last May, Southwest announced a commitment to transform our Customer experience, including work to bring vastly improved WiFi connectivity and greater bandwidth onboard through latest-generation upgraded routers and modems. We currently have more than 350 aircraft upgraded and expect the full fleet to be completed by third quarter of this year."

"In addition to upgrading our current fleet equipped with our legacy provider, Anuvu, we’re introducing an additional internet provider, Viasat, which will provide WiFi hardware on new aircraft in early March.  With two vendors providing connectivity in our fleet, we’re introducing a new pricing model for onboard internet."

Southwest Seems Tone Deaf to Passenger Needs

Southwest has yet to restore its full flight schedule since the covid pandemic. That's partly due to pilot shortages and perhaps at least partially a cost-saving measure. But, fewer flights mean that more passengers won't be able to fly direct. That means making a connection -- something that's already a hassle -- and charging for internet by flight simply grinds salt into that wound.

Basically, loyal passengers have stuck with Southwest despite the holiday problems and many of them face itineraries that are no longer non-stop. To reward them for this, the airline has tacked on a ticky-tack charge that seems inconsistent with Southwest's branding as a customer-friendly airline.

WiFi has become sort of table stakes for any airline and Southwest's current policy always seemed reasonable. You pay once for the day and get access even if you have multiple flights (something no passenger would willingly choose).

The new policy punishes people for having connecting flights and could push loyal passengers to opt for cheaper airlines or full-fare options that offer direct flights. Southwest should understand that this type of change -- especially now -- won't meaningfully impact its bottom line, but will continue to lean into the narrative that the company has lost its customer-friendly approach.

Southwest also seems to miss the point when it tried to justify the changes in its emailed statement.

"This impacts a small subset of customers due to our robust network of nonstop flights, free onboard entertainment, and a limited number of customers choosing to use paid internet across connecting flights," the airline shared.