One significant way Southwest Airlines (SWA) has consistently distinguished itself from competitors is by allowing bags to fly free. Passengers can check up to two bags weighing 50 pounds each at no charge. This has been their primary selling point, and they have created numerous commercials to promote it. Unfortunately, they will need to revise those ads, just as I will have to edit many of my articles that highlight Southwest’s generous baggage policy.

Southwest Airlines plane at the gate.But today, the airline announced that they will now start charging customers for checked bags, a reversal of their decades-long policy.

If you’ve been following along, then you knew that this was coming following the Southwest Airlines hostile takeover by hedge fund Elliott Investment Management. Last September, after Elliott’s series of massive changes, I wrote that “I thought for sure Southwest was going to end their bags fly free policy or at least drop it down to just one bag but so far, they’re not.”

On that late September day, Southwest dramatically changed from being a darling to their loyal customers thanks to their unique offerings (like bags fly free, open seating, no extra legroom (except in the mandatory exit row) and no red-eyes … to just being like everyone else.

After Elliott Management purchased a large stake in the company, they pushed for major changes, including ousting CEO Bob Jordan and other top executives. They did away with their open seat policy and started offering ‘Premium Seating’, which offered extra legroom options with up to five additional inches of pitch (legroom) for approximately a third of its seats.

They also began flying red-eyes just last month.

And so, it’s not that surprising that they’ve finally done away with their bags fly free policy in an attempt to increase revenues. According to Forbes, United, Delta, Spirit and JetBlue made $1 billion, $788 million, $650 million and $480 million respectively from baggage fees in the first three quarters of 2023. That’s a big pie and Southwest wants its slice.

Here are the key changes announced today:

Southwest Airlines Policy Changes (Effective May 28, 2025):

  1. Checked Baggage Policy:
    • Two Free Bags: Rapid Rewards® A-List Preferred Members and Business Select® Customers.
    • One Free Bag: A-List Members, Rapid Rewards Credit Cardmembers, and select Customers.
    • Bag Fees: Customers who do not qualify will pay for their first and second checked bags (weight and size limits apply).
  2. Rapid Rewards Program Updates:
    • Increased Points: Earn more points on Business Select fares.
    • Reduced Points: Earn fewer points on Wanna Get Away® and Wanna Get Away Plus® fares.
    • Variable Redemption Rates: Points required for reward flights will vary based on demand.
  3. New Basic Fare Introduction:
    • A lower-priced Basic fare will be introduced for tickets purchased on or after May 28, 2025, ahead of offering assigned seating and extra legroom options.
  4. Expanded Booking Channels:
    • Southwest flights and fare products are now available through Expedia as part of broader distribution efforts.
  5. Flight Credit Expiration:
    • Credits for tickets purchased on or after May 28, 2025, will expire one year or earlier from the ticketing date, based on fare type.

These changes aim to reward loyal customers while providing new fare options and expanding booking access.

As a business traveler, some of Southwest’s changes I like … but I’m not their target customer so I know this isn’t going to sit well with their loyal base, many of whom I’m afraid they’ve already lost, not to mention the many workers they lost when they laid them off last month.

Personally, I value extra legroom and knowing exactly where I’m sitting and I don’t mind paying for either. I’m also happy that the new seating policies should do away with those ‘miracle passengers’ who took advantage of Southwest’s open seat policy by claiming they had a disability so they could board first and sit at the front of the plane. They would board using a wheelchair but then walk off the plane.

But when it comes to paying for checked bags … nobody likes that and it’s a shame to see this long-standing policy that was so key to Southwest’s identity, come to an end.

Here’s my video on it.

YouTube video

KEEP READING

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