Core Viewpoint - Southwest Airlines' stock rose over 5% following the announcement of a new pricing regime that aligns with industry standards, outperforming the S&P 500's gain of just over 2% [1]. Group 1: New Pricing Strategy - Southwest Airlines will implement a $35 fee for the first checked bag and a $45 fee for a second checked bag, effective immediately for flights booked from that day onward [2][4]. - Passengers with Business Select or Choice Extra tickets can check two bags for free, while A-List and Rapid Rewards credit card holders can check one bag for free [2]. Group 2: Industry Trends - The introduction of bag fees is part of a broader trend in the airline industry, where carriers have been increasingly relying on non-ticket revenue to supplement income as many travelers opt for the cheapest available tickets [5]. Group 3: Financial Context - The decision to charge for checked bags follows Southwest's recent disappointing financial performance, suggesting that the airline is seeking new revenue streams [6]. - There is uncertainty regarding whether the removal of the free bag check policy will lead to customer defection, although it is anticipated that travelers may accept the new fees if overall flight costs remain reasonable [6].