Southwest Ending Free Checked Bags Policy

Southwest Airlines is joining the rest of the airline industry and charging checked bag fees.

No more “bags fly free” – it’s signature advertising phrase – after May 28, except for top tier frequent flyers.

It’s the end of the airline’s 54-year tradition, and one which could undermine customer loyalty – especially since Southwest CEO Bob Jordan told CBS News recently that bags would continue to fly without charge.

Southwest Airlines plane in flight_evelynkanter — Southwest Airlines photo

“Bags will still fly free,” Jordan said in September 2024. “It’s the third thing customers look for after fare and schedule: Bags fly free, on us. Ninety-seven percent are people who are aware of our policies. So it’s a huge consumer advantage. So bags will absolutely fly free.”

But he did not say that would be indefinitely. Apparently, he’s changed his mind since that interview in September 2024, in reply to pressure from investors to improve the bottom line, and the general outlook for the economy.

Starting May 28 — just in time for the busy summer travel season — only Southwest’s most elite Rapid Rewards A-List Preferred members and passengers who book their top-tier Business Select fares will receive two free checked bags.

Frequent flyer A-List Members, Southwest-branded credit card holders and other select customers will be allowed one checked bag.

Everyone else will be charged for their first and second checked bags on flights on or after May 28.

That applies to all flights, no matter when they were booked.

It’s another massive change for Southwest after it dropped its open seating system recently, another thing which made Southwest different from the rest of the pack.

Also starting May 28, Southwest will add a heavily discounted basic economy fare class that will guarantee a seat on a plane, but likely with restrictions similar to the basic economy fares offered by other airlines.

Effect on Southwest Brand Loyalty

“This is how you destroy a brand. This is how you destroy customer preference. This is how you destroy loyalty. And this, I think, is going to send Southwest into a financial tailspin,” airline industry analyst Henry Harteveldt, of Atmosphere Research Group, told CBS News.

“Southwest, with these changes, becomes just another airline.”

Just last September, Southwest CEO Bob Jordan told CBS News that bags would continue to fly without charge.

“Bags will still fly free,” Jordan said. “It’s the third thing customers look for after fare and schedule: Bags fly free, on us. Ninety-seven percent are people who are aware of our policies. So it’s a huge consumer advantage. So bags will absolutely fly free.”

But when pressed if they’d always fly free, he acknowledged, “Well, never say never. … It’s like saying open seating would never change 20 years ago. Consumer preferences change, but from everything that we see, there’s no reason to reconsider this at all, especially right now.”

Airlines Earn Millions From Checked Bag Fees

The cost of a checked bag has not been announced but airline sources say it will be in line with other carriers.

That means $35 or $40 for the first checked bag and $50 or more for a second bag, likely all with weight restrictions.

Southwest is the last major U.S. airline to offer a basic economy product, which carriers launched to compete with ultra-low cost airlines like Frontier and Spirit.

Checked bag fees are a major source of income for airlines.

Despite not charging for the first two checked bags, Southwest collected $73 million in baggage fees in 2023, and $62 million in the first 9 months of 2024, according to Department of Transportation statistics.

However, that is a fraction of the baggage fees collected by other airlines, with American Airlines collecting $1.4 billion in 2023, while United Airlines pulled in $1.2 billion and Delta Air Lines garnering $985 million.

More Changes at Southwest

The move comes as Southwest, the nation’s fourth-largest airline, has been under intense pressure from investors to improve its financial performance after struggling to keep pace with changing customer preferences post-pandemic.

Other recent changes –

first ever layoffs,
first redeye flights
end open seating policy next year, replacing it with seat assignments and sell extra legroom seats for an additional fee, as other domestic airlines do.

Also announced Tuesday are changes to its Rapid Rewards frequent flyer program — increasing the points flyers get for booking higher-priced Business Select fares while reducing the points earned on less expensive “Wanna Get Away” and “Wanna Get Away Plus” fares.

The airline will also start dynamic or variable pricing for points redemption across higher- and lower demand flights.

In a video statement, CEO Jordan said the changes “will help us return to the levels of profitability we all expect, and to support our collective long term success. It’s also about adapting to what our customers want. “Many things have changed post-Covid: the loss of short-haul demand, a rise in premium demand, and a change in customer preferences.”

He also said the main thing at Southwest is dedication to customer service, not open seating or even bags fly free.

Jordan said the goal is to secure Southwest’s future.

ecoXplorer Evelyn Kanter is a journalist with 25+ years of experience as a newspaper and magazine writer, radio & TV news producer & reporter, and author of guidebooks and smartphone apps – all focusing on travel, automotive, the environment and your rights as a consumer.