End of an era: Southwest Airlines to charge for checked bags

Southwest Airlines has announced a major shift in its baggage policy that will take effect on May 28, 2025. For the first time in over five decades, the airline will impose fees on checked bags for the majority of its passengers. This move comes amid pressure from an activist investor group, which has urged the carrier to reassess its cost structure in order to bolster revenue.

Under the new policy, only customers with top-tier status in the airline’s loyalty program or those booking premium fares will be eligible for two complimentary checked bags. Specifically, passengers holding Rapid Rewards A-List Preferred status or those purchasing top-tier Business Select fares will continue to receive this benefit. Frequent flyers with standard A-List status and holders of the Southwest credit card will be allowed one free checked bag, while all other travelers will incur fees for both first and second checked bags.

In addition to the revised baggage fees, Southwest is also updating its loyalty rewards structure. The airline has adjusted the number of Rapid Rewards points earned on various fare classes, awarding more points on premium fares and fewer on its budget options. Furthermore, the carrier plans to introduce variable redemption rates that will reflect the demand for higher- and lower-demand flights. These changes are part of a broader strategy to create a more segmented fare structure that targets customers who prioritize lower fares over additional perks.

Southwest is also set to roll out a new basic fare option for its lowest-priced tickets, which will come with restrictions such as the absence of assigned seating and fewer amenities. In a further bid to expand its market reach, the airline recently made its flights and fare products available on a major online travel agency platform. Meanwhile, flight credits issued for tickets purchased on or after May 28, 2025, will now have shorter expiration periods based on the fare type.

A top executive at Southwest explained that the changes are necessary to generate additional revenue and cover rising operational costs. “We’ve come to realize that adjustments to our baggage policy are crucial for sustaining our business model in today’s competitive environment,” the executive noted. However, some industry analysts have warned that the policy shift might push some loyal customers toward competing carriers, potentially eroding the unique market position Southwest has held for decades.

As the airline industry continues to navigate economic headwinds and fluctuating consumer demand, this policy overhaul marks a significant turning point for Southwest Airlines, once celebrated for its customer-friendly baggage policy.