Southwest Airlines has announced major changes to its bag policy as well as fares and flight credits, including doing away with what many customers considered its greatest perk.
The airline informed customers in an email sent Tuesday morning titled ‘policy changes you need to know’.
Southwest started by stating that updates to its policies and benefits within its fare bundles were part of its effort to ‘offer you more choices to create travel experiences that fit your needs’.
Then the airline broke the news: two free checked bags for all customers will be no more.
Why is Southwest Airlines getting rid of its free bag policy?
Southwest faced pressure to change its business model and boost returns since the hedge fund Elliott Investment Management obtained a stake in the company last year.
The airline’s executives told investors that its ‘two bags fly free’ policy is central to operations and identity. No other airline offers the perk.
Southwest said at an investor day in September that it would lose $1.8billion in market share by removing the free bags policy, while earning roughly $1.5billion by charging for bags. But the decision has been made.
‘We recognize these changes may be a disappointment to some, but know we’re committed to building a Southwest that will continue to offer you low fares, convenient flights to destinations you want, and a travel experience that is rewarding,’ stated the email signed by Bob Jordan, Southwest’s president, CEO and board vice chairman.
Who will be affected by these changes?
Southwest will continue to provide free checked bags to its Rapid Rewards A-List Preferred Members and customers with Business Select fares.
A-List Members and ‘other select Customers’, and those with the Southwest credit card will be able to check one bag in for free.
‘All remaining Customers will pay to check their first and second bags, and we will continue to charge for the third and fourth checked bags,’ stated the email.
The policy change applies to flights booked on or after May 28, 2025.
How much will it cost to bring a bag on a flight now?
Southwest has not announced how much the bag check fees will be.
As a reference point, bag charges by competing major carriers America, Delta and United start at $35.
Southwest was trending on X (formerly Twitter) on Tuesday with angry comments including from longtime loyal customers.
One X user wrote: ‘Southwest letting you check 2 bags for free was the ONLY thing keeping them in business. If I gotta pay for BOTH bags now AND you cost just as much as a BETTER airline, why wouldn’t I go with them instead? Their pockets are about to HURT!! This won’t last long.’
What other changes are being introduced?
On top of the bag policy change, Southwest announced it is updating fares in two phases.
Phase 1 starts this month and entails increasing the Rapids Rewards points earning ratio for Business Select fares and lowering it for Wanna Get Away Plus and Wanna Get Away, which are its lowest fares. Redemption rates will also vary on high and low demand periods.
Phase 2 will erase what is arguably the second greatest remaining perk of Southwest. A new Basic fare replacing Wanna Get Away fares will not be refundable or allow changes or be transferrable for flight credits. Basic fare flight credits will expire in six months, and credits for other fares in 12 months. Southwest credits did not expire in the past. Basic fares also will not permit same-day standby.
Southwest detailed all the upcoming changes in a chart. It comes after the airline’s July 2024 announcement that it is doing away with its signature open seating policy.
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