Southwest Airlines Scraps Free Checked Bags for Most Passengers

WASHINGTON — In a significant policy shift, Southwest Airlines announced on Tuesday its decision to eliminate the “Bags Fly Free” program for a vast majority of its customers, a move that could reshape its budget-friendly reputation. This change comes just ahead of the airline’s transition to assigned seating, a step aligning it with other U.S. carriers.

Currently, Southwest allows passengers to check two bags for free. However, effective for flights booked on or after May 28, 2025, this benefit will only be available to select groups. Southwest’s President and CEO, Bob Jordan, confirmed that most customers will not be able to check bags without incurring fees.

Though the airline has not yet disclosed the cost of checked bags, competing airlines often charge fees ranging from $35 to $50. Rapid Rewards A-List Preferred Members and those purchasing Business Select tickets will continue to enjoy two free checked bags. Additionally, A-List Members and other select customers will receive one free checked bag, and holders of the airline’s credit card will earn a credit for one checked bag.

The announcement comes amidst Southwest’s broader strategic changes, which include the introduction of a “Basic” fare option and redeye flights initiated earlier this year. These modifications follow pressures from investors for improved profitability, underscored by the airline’s recent layoffs of 1,750 jobs, constituting about 15% of its corporate workforce.

At a recent investor meeting, executives emphasized the importance of the bag policy in distinguishing Southwest from its competitors, many of which charge for checked luggage. Activist investors, including Elliott Investment Management, have exerted pressure for revenue enhancements, leading to the restructuring of the airline’s operations.

Traditionally regarded as a budget airline due to its no-fee bag policy and open seating arrangement, Southwest is set to change its seating practices as well. A shift to assigned seating is slated to begin in the latter half of 2025, with open seating expected to conclude in early 2026.

Jordan expressed optimism about the airline’s future, noting the potential to meet evolving customer needs and enhance profitability. The announcement sparked a positive response from shareholders, propelling Southwest Airlines’ stock up by 7.3% in premarket trading following Tuesday’s news.