.jpeg) |
Southwest Airlines ends free baggage policy — what you need to know
Southwest Airlines Ends Free Baggage Policy – What Travelers Need to Know
Southwest Airlines announced on Tuesday that it will begin charging passengers for checked luggage, ending a policy that had set it apart from competitors for over 50 years.
When Will the New Policy Take Effect?
Starting May 28, 2025, customers purchasing most ticket types will be required to pay a fee for checked bags, except for premium fare classes and elite members of Southwest’s loyalty program.
Why Is Southwest Making This Change?
For decades, Southwest marketed its “bags fly free” policy as a key advantage over competitors. However, rising post-pandemic costs and pressure from activist investors to boost profitability have led the airline to reconsider. By introducing baggage fees, Southwest aims to generate additional revenue, aligning itself with other major U.S. airlines that earn billions annually through similar charges.
How Much Will Checked Bags Cost?
While Southwest has not yet disclosed specific pricing, analysts predict fees will be in the range of $35 per checked bag—comparable to what Delta, American, and United currently charge. Industry experts estimate this move could generate around $1.5 billion annually for Southwest.
Who Will Still Get Free Checked Bags?
A-List Preferred Members: Two free checked bags
Business Select Fare Customers: Two free checked bags
A-List Members: One free checked bag
Southwest Credit Card Holders: One free checked bag
Other Major Changes at Southwest Airlines
This baggage fee policy is part of a broader overhaul of Southwest’s business model, which includes:
Eliminating Open Seating: The airline is shifting to assigned seating.
Introducing Basic Economy Fare: A lower-cost ticket option with more restrictions.
Loyalty Program Changes: Rapid Rewards points will now be based on ticket price rather than distance traveled.
Flight Credit Expirations: Tickets purchased on or after May 28 will have flight credits that expire within one year.
Workforce Reductions: Southwest has cut 1,750 jobs—approximately 15% of its corporate workforce—to reduce costs.
Financial Impact and Market Reaction
Southwest Airlines, which accounts for a significant portion of passenger traffic at several major U.S. airports, has struggled with revenue stagnation and increased operating costs. Following the baggage fee announcement, the airline’s stock price surged nearly 9%.
What This Means for Travelers
This change marks a major shift for Southwest, which long stood out for its customer-friendly policies. While the decision is expected to generate significant revenue, it remains to be seen how customers will respond. Many may continue flying Southwest for its other advantages, while some could opt for competing airlines based on overall pricing and service offerings.