Saturday, 28 September 2024
by BD Banks
Conway Gittens: I’m Conway Gittens reporting from the New York Stock Exchange. Here’s what we’re watching on TheStreet today.
Fresh data released Friday seemed to support the Federal Reserve’s September rate cut. The Personal Consumption Expenditures Index showed inflation rose 2.2 percent in August compared to a year ago, down from 2.5 percent in July. That move brought the Fed’s preferred inflation measure even closer to its 2 percent target.
Related: Here’s where Southwest’s first red-eye flights will go
In other headlines – there’s good news for people considering a flight on Southwest Airlines. The company confirms that it will not start charging baggage fees. Right now, the airline lets passengers check-in two bags at no cost, while most airlines charge at least $35 for the first bag. In just the first six months of 2024, airlines collected $3.7 billion in checked bag fees, according to the Bureau of Transportation Statistics.
Southwest “believes any change in the current policy..would drive down demand and far outweigh any revenue gains created by imposing and collecting bag fees.”
The airline is also betting that by keeping its “bags fly free” policy, fewer passengers will bring bags on the plane, which makes plane boarding smoother and faster.
That last point is important since Southwest also announced a delay in getting rid of open seating. The airline said assigned seating will not officially kick-in until 2026, with ticket purchases beginning in late 2025. Southwest admits 80 percent of its customers and 86 percent of the flying public prefer assigned seats.
One of the reasons for the delay has to do with Southwest’s other plan to introduce premium seating, which means plans have to be reconfigured – and that takes time.
Southwest’s management is under pressure to shake things up after a drop in revenue.
That’ll do it for your Daily Briefing. From the New York Stock Exchange, I’m Conway Gittens with TheStreet.
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