Southwest Airlines Ends Free Checked Bags Policy After Decades Long Tradition
Southwest Airlines is officially ending its decades-long “bags fly free” policy, marking a major shift in the budget airline’s strategy. Starting with bookings made on or after May 28, most passengers will have to pay to check bags — a move that distances the airline from a key tradition it had used to stand out in the crowded air travel market.
Who Still Gets Free Checked Bags?
Not everyone will be affected by the new fees. Customers who qualify for Rapid Rewards A-List Preferred status, book Business Select fares, or hold Southwest’s co-branded credit card will still get free checked bags.
- A-List Preferred & Business Select travelers: Two free checked bags
- A-List members and select fare holders: One free checked bag
- Credit card holders: One checked bag credit
All other travelers will now need to pay, though Southwest has not yet released the specific pricing for the new baggage fees.
More Changes Coming to Southwest Flights
This latest policy update is part of a broader overhaul by the airline. In the last year, Southwest also announced it would abandon its open seating policy — a signature feature for over 50 years — in favor of assigned seating, expected to launch next year. The airline is also planning to add premium seating with extra legroom and now offers red-eye flights.
Why the Shift? Financial Pressures and Investor Influence
Southwest is facing increased pressure to grow profits and improve performance. In recent months, the airline:
- Announced 1,750 corporate job cuts, or 15% of its workforce, marking the first major layoffs in its 53-year history
- Reached a deal with Elliott Investment Management to avoid a proxy fight, with the hedge fund gaining seats on the board
- Acknowledged that charging for checked bags could generate around $1.5 billion annually, though internal estimates suggest it might lose $1.8 billion in business due to customer dissatisfaction
Still, the airline’s leadership believes this shift will help attract new customer segments and boost long-term profitability. CEO Bob Jordan called the changes an opportunity to “meet current and future customer needs” and return to expected profit levels.
What’s Next for Passengers and the Airline?
Alongside the baggage fees, Southwest also plans to launch a new basic fare tier as part of this transformation. Meanwhile, the airline now forecasts first-quarter revenue per available seat mile to rise just 2% to 4%, down from an earlier estimate of 5% to 7%. Flight capacity is also expected to drop about 2%.
Despite these shakeups, the market reacted positively — Southwest stock jumped more than 6% after the announcement.
