Southwest, long known for its bag fly-free policy, has threw away the perks of its signature and will begin charging passengers for checked baggage later this year.
The carrier announced the change on March 11th, showing a major change in its identity as the last major US airline to offer free check bags. Southwest has never requested a bag in its 54-year history. New baggage fees will be valid for most tickets purchased after May 28, 2025. The exact price structure has not been revealed yet.
“We have a huge opportunity. In a statement on the airline’s latest policy, Bob Jordan will return to the level of profitability that both us and our shareholders expect, attracting new customer segments that are not competing today.
However, not everyone has to pay. Business Select Fare customers and members of Southwest’s Rapid Rewards Loyalty program at A-List priority levels still get two free check bags. A-list members and Southwest credit card holders will be assigned one free check bag.
“Southwest has always been known as a family-friendly airline, offering customer-centric policies such as plan changes and flexibility in free check baggage,” said Jennifer Yellin, a travel expert at Point Pass, which allows users to view the extensions of their browser extensions that allow users to view both cash and miles flight prices at the same time. “These new changes have shifted Southwest’s focus to coincide with other major US carriers and move away from its core roots of customer-friendly.”
Just like Southwest Investor Day in September, the airline said the free check bag policy wouldn’t go anywhere, even if other changes are underway, such as the end of the open seat approach. However, catastrophic tech meltdowns and corresponding government-issued fines during the 2022 holiday season are burdening airline bottom lines, making it profitable by increasing profitability, given Southwest is increasing pressure from investors to increase profitability.
Other airlines have made hundreds of millions of dollars from baggage fees ($7 billion in 2023 alone), according to the Bureau of Transportation Statistics, and subsequent lawsuits could potentially add a significant source of revenue for Southwest. If the travelers were flying with them, that’s true.
“Even within the first hours of this news, the online commentary was purely negative,” said Katy Nastro, travel expert for the Flight Deals app and website Going. “When customers book flights, unless there’s a non-stop option or perhaps a better time in Southwest, this could turn the longtime “luv’ers” elsewhere when it comes to prices. ” (Initial Luv It is a Southwest stock exchange and is lovingly applied to policies such as Southwest vouchers. The Southwest logo is also a heart symbol. )
Southwest has built its brand by refusing to follow the examples of other major airlines, beating its loyal travelers who appreciated its transparent, unrestricted pricing. But now, as airlines pivot to match their competitors, they risk losing the very distinction that once stood out.
“Instead of carving out a clear niche, Southwest spans two worlds. It’s not a particularly paid airline or a full-service competitor.” “This halfway point could alienate the most loyal customers who viewed the Southwest as a shelter from nickel and diming. Trying to become all, Southwest could become a one-size airline.”
Mario Machulic is the president of customer management practices that have supported brands such as United Airlines, Celebrity Cruises and Alaska Airlines, and builds better customer experience practices, maintains consumer loyalty and reflects that sentiment. He said the changes could lead to consumers losing faith in the brand, and airlines must actively create differentiators between competitors.
“The passengers want transparency,” Machulic said. “They need to know how they will benefit them in other ways, through lower base fares, increased flight reliability, or new perks from frequent flyers. Airlines that prioritize simple and efficient customer journeys will be on top, even with new policy changes that will frustrate consumers first. Consumers want airlines to balance profitability with passenger value, and Southwest can address customer frustration and potentially lose long-standing customers.”
More changes in Southwest
Southwest doesn’t just distribute baggage fees. We are making radical changes to our overall business model.
The new Premium Seat Category and Redeye Flight Options may appeal to customers. Other changes, such as the introduction of more restrictive basic economic fares (as offered by the US, Delta and United), can be frustrating, especially for those who appreciated Southwest’s failure to disrupt the ticketing stage.
In terms of loyalty, the rapid rewards have also been overhauled. Airlines are tweaking how they earn points (customers earn more points in business class seats and fewer points in basic economy seats). Flight credits now have an expiration date. This is a tough departure from the previously defended flexibility from the Southwest.
The airline will also disband its open seat policy in favor of allotted seats filled with mixed reactions from the flyer when it was announced in July 2024.
Together, these changes point to a new direction for the airlines that have built a reputation for doing things differently. Other changes remain, but it is clear that the Southwest is pivoting towards a more traditional airline playbook.
