Frontier makes Southwest passengers a bold offer | Official Website of Louis Velazquez, entrepreneur, finance guy and tech innovator

Just as Delta (DAL) once caused a firestorm by cracking down on lounge access, Southwest Airlines (LUV) is currently dealing with the aftermath of scrapping the last feature that made it stand out from other low-cost carriers: two free checked bags regardless of passenger fare class.

The move came as new hedge fund investor Elliott pushes Southwest to get back to profitability but also brought with it the anger of many longtime customers. The feature was so integral to Southwest’s brand that “two bags fly free” was trademarked as its motto.

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Southwest customers are angry, Frontier sees opportunity: the latest

“What’s changed is that we’ve come to realize that we need more revenue to cover our costs,” Southwest Chief Operating Officer Andrew Watterson said in a March 11 interview. The change will apply to flights departing from May 28.

Amid the frustration that such an announcement caused to longtime Southwest flyers (in the summer of 2024, the airline also scrapped its decades-old open seating policy), Denver-based Frontier Airlines (FRON) quickly rolled out a promotion that takes swipes at its competitor.

While the airline typically follows the low-cost model of charging for both checked and carry-on baggage in the cheapest fare class, those who book travel up until August 18 by March 24 will be upped to a bundle that includes seat selection and one free carry-on bag.

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To take advantage, travelers need to go on the Southwest website, pick the flight they want to take and add the FREEBAG promo code when completing the payment details for the purchase. The promotion would apply to the carrier’s basic fares starting at $39 for short domestic flights between nearby cities.

Frontier takes swipe at Southwest: ‘We’ve always had heart’

“We’ve always had heart,” Frontier CEO Barry Biffle said in a clear swipe at Southwest. “Some airlines are walking away from what travelers love, but we’re running towards it. Think of this as the ultimate ‘divorce your old airline’ deal.”

A similar situation played out when, in September 2023, Delta competitors JetBlue Airways (JBLU) and Alaska Airlines (ALK) swept in with offers to match or extend customers’ loyalty status when the former airline announced that it was raising the spending requirements to gain lounge access as well as introducing limits on how many times those who hold it can access the Delta Sky Club in a given year.

While those who frequently fly with a given airline usually do it for reasons that will not make them immediately switch to another, the immediate burst of customer anger provides a very strong marketing opportunity for competitors.

Biffle also teased that, should the deal prove to be popular, Frontier may make it permanent.

“If travelers show us the love, we’ll make these perks permanent,” Biffle said further.

Southwest, in turn, shot down Frontier’s promotion and said that the option to have no “cancellation fees, view in-flight entertainment or bring along two carry-on items on Southwest” can still be accessed by choosing one of the the airline’s new bundles rather than a promo code (the basic bundle, however, requires passengers to pay extra for any of these things save for in-flight entertainment available to all seats in a given plane.)