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With Memorial Day behind us, Americas summer travel season is now in full swing. While flyers should be aware of how to find great fares and the best apps to use when taking a vacation overseas, they should also be mindful of a few new rule changes going into effect at popular airlines, which could impact their trips. Those changes are happening at two of Americas most well-known airlinesSouthwest and Unitedand include alterations to the airlines’ free baggage and check-in policies, respectively. Heres what to know about the changes and when they go into effect. Southwests signature Bags Fly Free policy changes on May 28 On Wednesday, May 28, Southwests signature Bags Fly Free policy is changing. The policy has been a defining feature of the airline for decades, which lets Southwest fliers check up to two bags for free on any flight. However, come May 28, that policy will end for many Southwest passengers. As Fast Company previously reported, many passengers who book flights on Southwest from May 28 will now need to pay for checked baggage, although some will still be able to check bags for free. Heres how the new checked baggage policies work, according to Southwest: If you are a Rapid Rewards A-List Preferred Member or traveling on Business Select fares, youll still be able to check up to two bags for free on your flight. If you are an A-List Member or a Rapid Rewards Credit Cardmember, youll get one checked bag for free on each flight. But if you dont fall into the categories above, youll now be charged to check your first and second bags on each flight. Its important to note that these new baggage-check rules and fees only apply to flights booked on or after May 28, 2025. If you booked your flight before that date, youll still be able to take advantage of Southwests old Bags Fly Free policy even if the flight takes place after May 28. Uniteds check-in policy changes on June 3 On June 3, anyone flying on United will need to check in for their flight at least 45 minutes before departure, the airline confirmed with Fast Company. Previously, some passengers could check in as little as 30 minutes before their flight. Those who do not check in at least 45 minutes before their flight is scheduled to depart will be denied boarding starting June 3. Historically, United has allowed those flying without checked bags to check in by as little as 30 minutes before a domestic flight. Those on domestic flights with checked bags had a 45-minute check-in cutoff. In order to simplify things for gate staff and provide uniformity for passengers, United will now require anyone on a domestic flight with or without checked bags to check in at least 45 minutes before departure. “The change brings greater consistency for our customers by aligning with our current checked baggage deadline and the check-in policies followed by most other airlines,” a United spokesperson told Fast Company via email. It should be noted that the new 45-minute check-in rule only applies to domestic flights. For international flights, United requires passengers to check in at least 60 minutes before the scheduled departure. Uniteds check-in time limits can be found here.
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E-Commerce
More Klarna customers are having trouble repaying their “buy now, pay later” loans, the short-term lender said this week. The disclosure corresponded with reports by lending platforms Bankrate and LendingTree, which cited an increasing share of all “buy now, pay later” users saying they had fallen behind on payments.The late or missed installments are a sign of faltering financial health among a segment of the US population, some analysts say, as the nation’s total consumer debt rises to a record $18.2 trillion and the Trump administration moves to collect on federal student loans.Shoppers who opt to finance purchases through BNPL services tend to be younger than the average consumer, and a study from the Federal Reserve last year said Black and Hispanic women were especially likely to use the plans, which customers of all income levels are increasingly adopting.“While BNPL provides credit to financially vulnerable consumers, these same consumers may be overextending themselves,” the authors of the Federal Reserve study wrote. “This concern is consistent with previous research that has shown consumers spend more when BNPL is offered when checking out and that BNPL use leads to an increase in overdraft fees and credit card interest payments and fees.”As Klarna grows its user base and revenue, the Swedish company said its first-quarter consumer credit losses rose 17% compared to the January-March period of last year, to $136 million.A company spokesperson said in a statement that the increase largely reflected the higher number of loans Klarna made year over year. The percentage of its loans at a global level that went unpaid in the first quarter grew from 0.51% in 2024 to 0.54% this year, and the company sees “no sign of a weakened U.S. consumer,” he said. More consumers are using ‘buy now, pay later’ plans Buy now, pay later plans generally let consumers split payments for purchases into four or fewer installments, often with a down payment at checkout. The loans are typically marketed as zero-interest, and most require no credit check or a soft credit check.BNPL providers promote the plans as a safer alternative to traditional credit cards when interest rates are high. The popularity of the deferred payment plans, and the expanding ways customers can use them, have also sparked public attention.When Klarna announced a partnership with DoorDash in March, the news led to online comments about Americans taking out loans to buy takeout food. Similar skepticism emerged when Billboard revealed that more than half of Coachella attendees used installment plans to finance their tickets to the music festival.An April report from LendingTree said about four in ten users of buy now, pay later plans said they had made late payments in the past year, up from one in three last year. According to a May report from Bankrate, about one in four users of the loans chose them because they were easier to get than traditional credit cards.The six largest BNPL providers Affirm, Afterpay, Klarna, PayPal, Sezzle, and Zip originated about 277.3 million loans for $33.8 billion in merchandise in 2022, or an amount equal to about 1% of credit card spending that year, according to the Consumer Financial Protection Bureau. An industry that is coming under less regulatory scrutiny The federal agency said this month it did not intend to enforce a Biden-era regulation that was designed to put more boundaries around the fintech lenders.The rule treated buy now, pay later loans like traditional credit cards under the Truth In Lending Act, requiring disclosures, refund processing, a formal dispute process and other protections.The regulation, which took effect last year, also prevented borrowers from being forced into automatic payments or charged with multiple fees for the same missed payment.The Trump administration said its non-enforcement decision came “in the interest of focusing resources on supporting hard-working American taxpayers” and that it would “instead keep its enforcement and supervision resources focused on pressing threats to consumers, particularly servicemen and veterans.”Consumer advocates maintain that without federal oversight, customers seeking refunds or in search of clear information about BNPL fee structures and interest rates will have less legal recourse. There are risks to taking out installment loans Industry watchers point to consumers taking out loans they can’t afford to pay back as a top risk of BNPL use. Without credit bureaus keeping track of the new form of credit, there are fewer safeguards and less oversight.Justine Farrell, chair of the marketing department at the University of San Diego’s Knauss School of Business, said that when consumers aren’t able to make loan payments on time, it worsens the economic stress they’re already experiencing.“Consumers’ financial positions feel more spread thin than they have in a long time,” said Farrell, who studies consumer behavior and BNPL services. “The cost of food is continuing to go up, on top of rent and other goods so consumers are taking advantage of the ability to pay for items later.”The Consumer Federation of America and other watchdog organizations have expressed concern about the rollback of BNPL regulation as the use of the loans continues to rise.“By taking a head-in-the-sand approach to the new universe of fintech loans, the new CFPB is once again favoring Big Tech at the expense of everyday people,” said Adam Rust, director of financial services at the Consumer Federation of America. The Associated Press receives support from Charles Schwab Foundation for educational and explanatory reporting to improve financial literacy. The independent foundation is separate from Charles Schwab and Co. Inc. The AP is solely responsible for its journalism. Cora Lewis, Associated Press
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E-Commerce
No place is more vulnerable to hurricanes in the 50 U.S. states than the Florida Keys.The chain of islands celebrated by singer Jimmy Buffett in his odes to tropical escapism is surrounded by water, jutting out 120 miles southwesterly from Florida’s mainland to Key West with the Gulf and Atlantic Ocean on either side.The archipelago historically has been known for its quirky and libertarian inhabitants who revel in the islands’ hedonistic, artistic, and outdoorsy lifestyle. In recent years, it also has become a haven for the wealthy.Overseeing safety for the more than 80,000 inhabitants of the Conch Republicthe nickname for the islands after denizens declared a tongue-in-cheek secession from the United States in the early 1980sis Shannon Weiner, director of emergency management for Monroe County, Florida.The Atlantic hurricane season starts June 1, and the county has some new weapons this season, including a brand-new emergency operations center and a new seawater desalination water treatment plant. The county also relies on surveillance flights from hurricane-hunting aircraft from the National Oceanic and Atmospheric Administration (NOAA) for information about how to prepare.But, the potential for a catastrophic storm like Hurricane Irma in 2017 is always at the back of residents’ minds. The Category 4 storm made landfall in the Florida Keys with winds up to 132 mph (209.2 km/h), destroying around 1,180 homes and seriously damaging another 3,000.Weiner recently talked to the Associated Press about the upcoming hurricane season. This interview has been edited for length and clarity. AP: Why is Monroe County perhaps the most vulnerable place in the 50 U.S. states for hurricanes?Shannon Weiner: Our entire island chain is surrounded by water. We have more water than we do land mass. Being uniquely situated between the two large bodies of water makes us very vulnerable. We see storms early, sometimes in their formationstorms that come across the Atlantic and then storms that develop in the south, in the Caribbean Sea. We tend to be in their path, and so we get a lot of storm practice here in Monroe County.Given your dependence on the National Weather Service and NOAA for hurricane predictions, how concerned are you about recent job cuts and budget cuts to the federal government?The weather service is a good partner, and the field offices, from what they were telling us and what they’re hearing here, everyone is secure. They are not expecting or anticipating any cuts to the (Florida Keys) field offices. So, of course, going into hurricane season, we’re really happy to hear that.Can we talk about Hurricane Irma? The Keys have always been vulnerable, but Irma was a shock to the system, right?The Keys had not had a storm of that magnitude or size since the early 20th century. People tend to get complacent. It’s human nature, right? They’re not as worried. They’re not as prepared. We were very fortunate with Irma in that we had plenty of days’ notice to evacuate. But when we came home and saw the devastation, it was an eye-opener. Being an island chain, we had unique challenges bringing logistics in to help us recover.Do residents typically evacuate when they are asked to?Usually, they tend to heed that advice. We are constantly reminding people to be prepared and how important it is in our county to evacuate because the Florida Keys, the entirety of the island chain, is a storm surge zone. People here tend to be pretty savvy when it comes to storms, and throughout the entire Keys, the bigger concern is storm surge rather than wind. We say, “hide from the wind and run from the water.”We are close to the start of the Atlantic hurricane season. What is keeping you up at night?The city of Key West is an incredibly resilient community. There’s a lot of history there. But there is also a lot of older architecture there. There are a lot of wooden homes, and for them to receive a storm, a direct impact of a major magnitude, that would be devastating for them. That is what keeps me up at nighta Category 4 or 5 storm hitting Key West.Given the Keys’ vulnerability, why do you think people choose to stay and live there?Because it’s beautiful here. It really is an island paradise. Being surrounded by a national marine sanctuary is amazing. I think everyone that lives here, we all live here for that reason. Because we appreciate the environment and the marine life and love the water. And so it’s worth it. You make sure that you’re prepared, and you have a plan if you need to go. And you go somewhere safe, and you come back, and you just put it back together. Follow Mike Schneider on the social platform Bluesky: @mikeysid.bsky.social. Mike Schneider, Associated Press
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E-Commerce
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