Southwest Airlines Ends Free Checked Bags
Southwest Airlines Ends Free Checked Bags in a major policy shift set to take effect on May 28, 2025. The airline will now charge passengers for their first and second checked bags, except for A-List loyalty members, Southwest credit card holders, and business fare travelers.
This marks a historic shift for Southwest, which has long promoted its “Bags Fly Free” policy to differentiate itself from competitors. However, rising operational costs and shifting consumer behavior have led the airline to follow industry trends by introducing baggage fees.
Why Southwest Is Changing Its Policy
For years, CEO Bob Jordan emphasized that No-cost checked baggage were a key factor in customer loyalty. However, data from third-party ticket platforms like Google Flights and Kayak showed that price—not baggage policies—was the biggest deciding factor for travelers.
Additionally, executives from other airlines, where bag fees are standard, further influenced this decision. Jordan acknowledged the move, stating, “These initiatives are new to Southwest, but they are not new to the industry.”
How This Will Impact Travelers
Financial Effects on Southwest
Despite its no-fee baggage policy, Southwest still collected $73 million in baggage-related revenue in 2023—a small figure compared to:
- American Airlines: $1.4 billion in baggage fees
- United Airlines: $1.2 billion
- Delta Air Lines: $985 million
By charging for checked bags, Southwest aims to increase revenue and maintain competitive ticket prices.
Will Passengers Stay or Switch?
While the change might frustrate loyal customers, industry experts suggest Southwest’s competitive pricing will help retain travelers. However, Delta CEO Ed Bastian and United CEO Scott Kirby believe this move could push customers toward other airlines.
Other Major Changes at Southwest
The new baggage policy is part of a broader transformation at Southwest, which includes:
- Assigned Seating – Moving away from open seating.
- Premium Seats – Offering extra-legroom seating for a fee.
- Red-Eye Flights – Expanding flight options with overnight routes.
- Third-Party Ticket Sales – Now available on Expedia, Google Flights, and more.
- Basic Economy Fares – A low-cost option with more restrictions launching in May 2025.
These changes follow a $1.9 billion investment by Elliott Investment Management, which pushed for leadership changes and cost-cutting measures.
What’s Next for Southwest?
For frequent flyers, losing No-cost checked baggage may be disappointing. However, this shift positions Southwest for long-term profitability and aligns it with industry standards.
The big question remains: Will passengers accept the change, or will they choose other airlines? One thing is certain—Southwest’s “Bags Fly Free” era is officially over.