Southwest Airlines, long famous for its Bags Fly Free policy, is ditching its signature perk and will start charging passengers for checked luggage later this year.
The carrier announced the change on March 11, marking a major shift in its identity as the last major U.S. airline to offer complimentary checked bags. Southwest has never charged for bags in its 54-year history. The new baggage fees will take effect for most tickets purchased on or after May 28, 2025. The exact price structure has not yet been disclosed.
“We have tremendous opportunity to . . . attract new customer segments we don’t compete for today, and return to the levels of profitability that both we and our shareholders expect,” Southwest Airlines CEO Bob Jordan said in a statement about the airline’s updated policies.
Not everyone will have to pay up, though. Business Select fare customers and members of Southwest’s Rapid Rewards loyalty program at the A-List Preferred level will still get two complimentary checked bags. A-List members and Southwest credit card holders will be allotted one free checked bag.
“Southwest has always been known as a family-friendly airline, providing customer-focused policies, such as flexibility when plans change and free checked baggage,” Jennifer Yellin, a travel expert at Points Path, a browser extension that allows users to see the price of a flight in both cash and miles simultaneously, told Afar. “With these new changes, Southwest is shifting their focus to align themselves with the other major U.S. carriers and moving away from their core roots of being customer-friendly.”
Southwest is straddling two worlds—no longer the fee-free airline, but also not a full-service competitor.
As recently as Southwest’s investor day in September, the airline said the free-checked-bag policy wasn’t going anywhere, even as other changes were underway, such as the end of its open seating approach. However, given that Southwest has been under increasing pressure from investors to boost profitability, especially as rising fuel costs, labor expenses, and post-pandemic travel fluctuations—not to mention a catastrophic tech meltdown during the 2022 holiday season and corresponding fines issued by the government—have strained the airline’s bottom line, the move isn’t exactly surprising.
Other airlines have made hundreds of millions of dollars from baggage fees (an estimated $7 billion total in 2023 alone, according to the Bureau of Transportation Statistics), and by following suit, Southwest has the potential to add a considerable revenue stream. If travelers keep flying with them, that is.
“The commentary online, even within the first few hours of this news, has been purely negative,” said Katy Nastro, travel expert at flight deals app and website Going. “When a customer goes to book a flight, unless Southwest has a nonstop option or perhaps a better time, when it comes down to price, this will likely shift long-time ‘LUV’ers’ elsewhere.” (The initials LUV are Southwest’s stock exchange code and have been affectionately applied to policies such as Southwest vouchers. Also, Southwest’s logo is a heart symbol.)
Southwest built its brand by refusing to follow the example of other major airlines, winning over loyal travelers who appreciated its transparent, unrestrictive pricing. But now, as the airline pivots to match its competitors, it risks losing the very distinction that once set it apart.
“Instead of carving out a clear niche, Southwest is straddling two worlds—no longer the fee-free airline, but also not a full-service competitor,” said Sally French, a travel expert at NerdWallet. “This middle ground may alienate its most loyal customers who saw Southwest as a refuge from nickel-and-diming. In trying to be everything to everyone, Southwest may become a one-size-fits-none airline.”
Mario Matulich, president of Customer Management Practice, a firm that has helped brands such as United Airlines, Celebrity Cruises, and Alaska Airlines to build better customer-experience practices and retain consumer loyalty, echoed that sentiment. He said that the changes could cause consumers to lose trust in the brand and that the airline will have to actively create differentiators between its competitors to keep its core travelers.
“Passengers want transparency,” Matulich said. “They need to know how this change benefits them in other ways, whether through lower base fares, improved flight reliability, or new perks for frequent flyers. Airlines that prioritize a simple and efficient customer journey will come out on top, even with new policy changes that initially frustrate consumers. Consumers want airlines to strike a balance between profitability and passenger value, and Southwest should be prepared to address customer frustration and potentially lose long-standing customers.”
Southwest passengers are flying into a changing future.
Vander Films/Unsplash
More changes at Southwest
Southwest isn’t just rolling out baggage fees; it’s making sweeping changes to its entire business model.
New premium seating categories and red-eye flight options may appeal to customers. Other changes, such as the introduction of a more restrictive Basic Economy fare (similar to those offered by American, Delta, and United), could be frustrating for travelers, especially those who appreciated that Southwest didn’t have confusing ticket tiers.
On the loyalty front, Rapid Rewards is also getting an overhaul. The airline is tweaking how points are earned (with customers earning more points on business-class seats and less on basic economy seats). Flight credits will now come with expiration dates, a stark departure from the flexibility Southwest previously championed.
The airline also plans to disband its open seating policy in favor of assigned seats, which was met with mixed reactions from fliers when announced in July 2024.
Together, these modifications signal a new direction for an airline that has built its reputation on doing things differently. While other changes remain to be seen, it’s clear Southwest is pivoting toward a more traditional airline playbook—whether passengers like it or not.
