After more than five decades of offering complimentary checked luggage, Southwest Airlines has ended its hallmark “bags fly free” policy. Effective May 28, 2025, passengers booking flights will incur fees of $35 for the first checked bag and $45 for the second. This policy shift brings Southwest in line with other major U.S. carriers like Delta and American Airlines, which have long charged for checked baggage .
Passengers who booked their flights before May 28 will still enjoy the previous benefit of two free checked bags, even if their travel dates are later. However, any changes made to existing bookings on or after this date will be subject to the new fees .
Exceptions and Loyalty Perks
While the new fees apply broadly, Southwest has outlined specific exemptions:
- Business Select/Choice Extra and A-List Preferred customers will continue to receive two free checked bags.
- A-List members and Chase Rapid Rewards credit cardholders are entitled to one free checked bag.
Financial Implications
The introduction of baggage fees is part of a broader strategy to enhance Southwest’s financial performance. Analysts project that the new fees could generate approximately $430 million in earnings before interest and taxes this year. This initiative is among several aimed at yielding around $1.8 billion through new revenue streams, cost savings, and fleet-related changes.
Operational Adjustments
The policy change may impact operational efficiency, particularly concerning boarding times and overhead bin space. To mitigate potential disruptions, Southwest has implemented new technologies, including AI predictive tools like the Lobby Awareness Tool and Bebop, to manage lobby crowding and carry-on estimates. Additional innovations include mobile bag-tag printers and enhanced crew communication tools.
Looking Ahead
Beyond baggage fees, Southwest plans to introduce other significant changes, such as assigned seating and extra legroom options for an added fee, marking a notable shift in the airline’s customer service model and fare structure .
As Southwest navigates these transitions, passengers are encouraged to review the new policies and consider their travel needs accordingly.
