Anika Markle Southwest Airlines to Start Charging for Checked Bags—A Major Shift
Southwest Airlines is ending its long-standing free checked baggage policy, marking a dramatic shift for the low-cost carrier. For more than 50 years, “Two Bags Fly Free” set Southwest apart from rivals, but starting May 28, most customers will have to pay to check luggage. Only top-tier frequent flyers, Business Select passengers, and Southwest credit card holders will still receive free checked bags.
This move aligns Southwest with competitors like Delta, American, and United, which charge around $35 per checked bag. The airline has not yet announced its fee structure.
Why the Change? Profit Pressures and Investor Demands
Southwest’s decision comes after mounting pressure from activist investor Elliott Investment Management, which secured five board seats and pushed for revenue-boosting changes. The airline, once adamant that free bags attracted loyal customers, now says it must increase revenue to stay competitive.
CEO Bob Jordan acknowledged that shifting booking behaviors and increased costs forced the airline to reconsider its stance. Southwest estimates the changes will add $800 million in earnings this year and $1.7 billion by 2026.
More Changes: Basic Economy, Loyalty Program Updates, and Cost Cuts
The baggage fees are just part of Southwest’s transformation. The airline will also introduce a basic economy fare and update its Rapid Rewards program, making it more like other airlines’ loyalty systems. Passengers will now earn points based on ticket price rather than flight distance, and award ticket pricing will fluctuate with demand.
Additionally, Southwest will reinstate ticket expiration policies and continue cutting costs. The airline recently announced its first major layoffs, slashing 1,750 corporate jobs, and is eliminating unprofitable routes, summer internships, and long-standing employee programs.
What This Means for Travelers
Southwest’s changes could drive some customers to competitors, especially those who previously chose the airline for its baggage policy. Delta and United executives see an opportunity to win over these travelers.
With assigned seating also coming soon, Southwest is moving away from its signature perks in favor of a more traditional airline model. Whether this gamble pays off or alienates loyal passengers remains to be seen.
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