Southwest Airlines Ends Free Checked Bags: What Travelers Must Know
Discover how Southwest Airlines’ new baggage fees and fare changes reshape travel budgets, with insights on exemptions, seat assignments, and what this means for your next flight.
Key Takeaways
- Southwest ends its iconic two free checked bags policy starting May 28, 2025.
- New fees: $35 for the first bag, $45 for the second on most fares.
- Exemptions include top-tier Rapid Rewards members, Business Select fares, and Southwest credit cardholders.
- Southwest introduces basic economy fares and will assign seats starting in 2026.
- Changes respond to activist investor pressure to boost revenue amid competitive airline market.
For over six decades, Southwest Airlines stood apart by letting travelers check two bags free of charge—a perk cherished by loyal flyers and a hallmark of the airline’s identity. But starting May 28, 2025, that era ends. Southwest will charge $35 for the first checked bag and $45 for the second on new bookings, aligning with fees charged by Delta, American, and United. This shift comes amid pressure from activist investors seeking to boost revenue. Alongside baggage fees, Southwest is rolling out basic economy fares and retiring its famed open seating policy, signaling a major transformation in its business model. Let’s unpack what these changes mean for your wallet and travel experience.
Ending Free Checked Bags
Southwest Airlines has long been the champion of free checked bags, a policy that lasted over 60 years and became a defining feature of the airline’s brand. But starting May 28, 2025, this beloved perk will vanish for most travelers. The airline will charge $35 for the first checked bag and $45 for the second on new bookings. This move aligns Southwest with its competitors like Delta, American, and United, who have charged similar fees for years. The change is not just about fees; it’s a signal that Southwest is shifting its business model to boost revenue amid growing financial pressures.
For many travelers, this news might feel like a betrayal of the airline’s promise. Yet, Southwest’s baggage fees are expected to generate significant revenue, especially since the airline traditionally handles two to three times as many checked bags as others. Despite collecting $83 million in baggage fees in 2024 without charging for the first two bags, the new fees will likely multiply that figure. The airline’s executives have acknowledged this shift as necessary, especially after activist investor Elliott Investment Management pushed for changes to improve profitability.
Navigating Exemptions and Perks
Not all travelers will feel the pinch of Southwest’s new baggage fees. The airline has carved out exemptions that reward loyalty and premium spending. Rapid Rewards A-List Preferred members and customers flying Business Select or Choice Extra fares will continue to enjoy two free checked bags. Standard A-List members and holders of Southwest’s co-branded credit cards will get their first bag checked free.
These exceptions create a tiered experience, encouraging travelers to engage more deeply with Southwest’s loyalty program or credit card offerings. Southwest credit cards, with annual fees ranging from $69 to $199, now carry added value beyond points—they can save you $35 on your first checked bag. This strategy cleverly balances new revenue streams with customer retention, rewarding frequent flyers while nudging casual travelers toward paid options. For those without status or cards, the fees are unavoidable, making it essential to factor baggage costs into travel budgets.
Introducing Basic Economy Fares
Alongside baggage fees, Southwest is debuting basic economy fares on May 28, 2025, marking a significant shift in its ticketing approach. This new fare type offers the lowest price but comes with strict limitations: no ticket changes, last boarding group, and fare credits expiring in six months instead of the usual 12. It replaces the popular Wanna Get Away fare, signaling a move to compete more directly with budget airlines and other major carriers.
Basic economy fares are a double-edged sword. They attract price-sensitive travelers but limit flexibility, which can lead to frustration if plans change. Southwest’s introduction of this fare type reflects broader industry trends where airlines segment customers by willingness to pay for convenience. For travelers, understanding these nuances is key to avoiding unexpected costs and making informed choices. The new fare structure, combined with baggage fees, means the days of simple, all-inclusive Southwest tickets are fading.
Ending Open Seating Tradition
Southwest’s open seating policy has been a quirky hallmark for decades, turning boarding into a competitive game where early check-in meant better seats. However, this tradition will end in 2026 when Southwest begins assigning seats, a change announced last summer. The airline plans to start selling tickets with assigned seats in the second half of 2025 for flights operating in 2026.
This shift addresses customer complaints and aligns Southwest with industry norms. Passengers often cited open seating as a reason to switch to competitors, and the new system will introduce extra legroom seats for additional fees. While some loyalists may mourn the loss of open seating’s spontaneity, the change promises a more orderly boarding process and new revenue opportunities. It’s a clear sign Southwest is evolving from its rebel roots toward a more conventional, profit-driven model.
Preparing for the New Travel Landscape
Southwest executives anticipate that passengers will carry on more luggage as checked bags become pricier, and they’re preparing by installing larger overhead bins on their Boeing fleet. Staff will also receive mobile bag tag printers to streamline the check-in process. These operational tweaks aim to ease the transition for travelers adapting to the new baggage fees.
Despite social media backlash, CEO Bob Jordan reported no drop in bookings following the announcement, suggesting customer loyalty remains strong. Still, travelers must rethink their packing and budgeting strategies. Carry-ons remain free, so packing smartly could save $35 or more per trip. For frequent flyers, leveraging loyalty status or Southwest credit cards can soften the financial impact. Ultimately, Southwest’s changes reflect a broader airline industry trend: balancing customer expectations with the hard realities of profitability.
Long Story Short
Southwest Airlines’ decision to end its legendary free checked bag policy marks a turning point for travelers and the airline alike. While the new fees might sting, exemptions for loyal customers and credit cardholders soften the blow. The introduction of basic economy fares and assigned seating reflects a broader industry trend toward revenue diversification and customer segmentation. For travelers, this means weighing the cost of convenience against budget priorities. The relief of free bags is fading, but savvy flyers can still navigate these changes with a little planning—like leveraging loyalty status or Southwest credit cards. As the skies evolve, so must your travel strategy, turning what feels like a loss into an opportunity to fly smarter.