Southwest Airlines is making a dramatic shift in its business model, announcing the end of its long-standing free checked baggage policy starting May 28, 2025. The airline, which has built its brand on the "Bags Fly Free" slogan for nearly 60 years, will now charge for first and second checked bags—a move aimed at boosting profitability.
Who Will Still Get Free Bags?
Some travelers will still be exempt from baggage fees, including:
- A-List loyalty program members
- Southwest-branded credit card holders
- Business fare travelers
Why the Change?
CEO Bob Jordan cited shifting customer behavior as the reason for the policy change, noting that price is the biggest factor for travelers. With Southwest now selling tickets on third-party platforms like Google Flights and Kayak, many customers compare fares without factoring in baggage perks.
Additionally, the airline is introducing "Basic Economy" fares starting in May, further aligning with legacy carriers like Delta, American, and United.
Other Major Changes at Southwest
- Assigned Seating: Moving away from open seating.
- Premium Seats: A first for Southwest, competing with traditional airlines.
- Selling Tickets on Expedia: Expanding reach to attract new customers.
- Red-Eye Flights: Increasing flexibility for travelers.
Industry Reaction & Market Impact
Rival airlines Delta and United see this as an opportunity, predicting Southwest may lose bargain-conscious travelers. However, Southwest’s stock (LUV) surged 6% on Tuesday, signaling investor approval of the cost-cutting strategy.
With new policies rolling out, Southwest is stepping into a new era—one that could redefine its standing in the airline industry. How will customers react? Time will tell.