Southwest Airlines to Start Charging for Checked Bags – A Major Shift
Southwest Airlines, known for its customer-friendly policies, is making a significant change that’s catching many travelers off guard. For the first time in its history, the airline will start charging passengers to check their bags, a move that marks a major shift in its long-standing business model. The new policy is set to take effect on May 28, 2025, and signals a departure from the beloved “two bags fly free” policy that has been a cornerstone of Southwest’s brand identity.
For years, Southwest stood apart from its competitors by offering two free checked bags, a policy that many travelers considered a major selling point. However, this change means that only certain passengers will continue to benefit from free checked baggage. Customers who are part of Southwest’s loyalty program with “A-List Preferred” status will still be able to check two bags for free, while A-List members and Southwest credit card holders will get one free checked bag. Those who do not fall into these categories will now have to pay a fee for checked luggage, bringing Southwest more in line with other major U.S. airlines.
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The airline stated that this move is part of a broader strategy to enhance its financial position and reward its most loyal customers. In addition to the baggage fees, Southwest is also introducing a new basic economy fare. This change will come with additional options for assigned seating and extra legroom—another shift away from its long-standing open-seating model, which is set to be eliminated in 2026.
Interestingly, this decision comes just months after Southwest had reassured passengers that it had no plans to charge for checked bags. As recently as September 2024, CEO Bob Jordan emphasized the importance of the free checked bag policy, citing research that indicated it was one of the top reasons customers chose Southwest over other airlines. At that time, the airline believed that eliminating this benefit would reduce demand and negatively impact revenue more than the fees would generate. Yet, with increased financial pressure from activist investors like Elliott Management, Southwest has now pivoted toward a more traditional airline pricing model.
This change is not happening in isolation. It follows a series of strategic shifts, including ending the airline’s open-seating policy and altering the structure of its Rapid Rewards loyalty program. The program now provides more points for Business Select fares but reduces points for budget fares like Wanna Get Away and Wanna Get Away Plus. Additionally, Southwest has imposed a new rule where flight credits issued for tickets purchased on or after May 28 will expire one year from the date of purchase, depending on the fare type.
While Southwest has long been considered the go-to airline for budget-conscious travelers, these new policies may lead some loyal customers to rethink their choices. With competitors already generating billions in baggage fees—U.S. airlines made $5.5 billion from checked baggage fees in the first three quarters of 2024 alone—Southwest is clearly looking to tap into that revenue stream while trying to maintain a balance between customer satisfaction and financial sustainability.
So, what does this mean for travelers? If you frequently fly Southwest and rely on the free checked bags, it might be time to consider signing up for a Southwest credit card or achieving A-List status to retain that benefit. Otherwise, come May 28, be prepared to factor baggage fees into your travel budget.
This move by Southwest represents yet another shift in the ever-evolving airline industry, where cost-cutting measures and new revenue streams continue to reshape the way we travel. Whether customers will accept this change or push back remains to be seen, but one thing is clear: flying Southwest will never be quite the same again.
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