Southwest Drops a Beloved Perk—Then Fumbles the Fallout
The reasoning was clear: shareholders expect more from Southwest. CEO Bob Jordan said in a statement, “We have tremendous opportunity to meet current and future customer needs, attract new customer segments we don’t compete for today, and return to the levels of profitability that both we and our shareholders expect.”
For a company whose longtime slogan has been “Bags Fly Free,” the backlash was immediate. Combined with last year’s decision to eliminate open seating, customers felt like Southwest was rapidly losing its identity, along with any reasons to fly the carrier. Many vowed to abandon the airline altogether, and some even predicted its downfall:
Then, Southwest somehow made things even worse.
In an attempt to add some humor to the swirl it was facing, the airline posted a joke on Instagram referencing the dramatic Luka Dončić NBA trade when the Dallas Mavericks transferred him to the Lakers.
Oof.
The response was brutal, and the feedback came in quickly. Customers were clearly feeling Southwest was making a mockery of the impact this would have on their pocketbooks.
What can we learn from this as communicators?
When delivering bad news—especially one that directly affects customer costs—there are key communication strategies to avoid making a bad situation worse. Southwest’s handling of this situation is now a full-blown PR crisis because of missteps that could have been prevented.
Be direct.
Don’t bury the lead or dance around the issue. Being vague or misleading erodes trust.
Southwest customers feel especially deceived because, in September, CEO Bob Jordan explicitly stated, “Bags will still fly free. It’s the third thing customers look for after fare and schedule… So bags will absolutely fly free.”
Just months later, that promise was revoked. Understandably, customers felt blindsided.
Be empathetic.
Southwest’s biggest misstep? The flippancy with which it treated the announcement. The now-infamous Instagram post made customers feel dismissed.
When delivering bad news, acknowledge the impact. Even if customers won’t like the change, they’ll appreciate being heard.
Provide a strong justification.
Southwest’s explanation—“we need to provide better returns for shareholders”—was interpreted as: “We need more money, so we’re taking away benefits.”
Maybe that’s true, but they could have framed it differently. Will this change improve service in any way? Are there future benefits on the horizon? Customers need more than a financial justification—they need to understand what, if anything, they’re gaining.
But, but, but: double check the Paulsen Rule.
In an earlier story about Kellogg’s tone deaf communications, Teresa Paulsen of Teresa Paulsen Communication looks at how the incident affects stock prices. And get this: Southwest Airlines (LUV) stock increased from $26.96 to $32.70 at the announcement of the change in bag policy and has settle down to $31. For publicly traded companies, the “Paulsen Rule” is to keep an eye on the stock value as a key indicator during a stormy public relations event. Of course, nonprofits and private companies will need different indicators.
Change is inevitable – and frankly, so are price increases, but how you communicate it makes all the difference. Southwest’s missteps have turned a business decision into a full-blown branding disaster. Whether they can regain trust remains to be seen