Which is what California is finding out now as they’ve had to raise prices of fast food to pay employees and what happens? You sell less food and you lay people off.
If price didn’t impact demand pizza would be a lot more expensive.
As far as bags flying free…Southwest will eventually change. They will have to. They’ve been teasing it on earnings calls for a long time now.
And where I live their prices are rarely cheaper. Of course, all depends on where you live and where you’re going.