Southwest Airlines just made a major move that’s likely going to have passengers shopping around for flight deals. The airline announced it’s ending its long-time policy of offering two free checked bags for all passengers. Now, only certain ticket classes and Southwest credit card holders will get that perk.
Top-tier ticket holders, like those with A-List Preferred status, will still get two free checked bags, while A-List members will get one. And if you hold a Southwest Airlines-branded credit card, you’ll still get one free checked bag. But for everyone else, it’s pay-to-play. While Southwest hasn’t announced how much they’ll charge for checked bags, you can expect it to be around $35, which is the standard for most major airlines. In fact, checked bag fees brought in about $5 billion for other airlines in 2024.
This shift comes after Elliot Investment Management took an ownership stake in Southwest last year and started pushing the airline to find ways to boost its revenue. The airline estimates it could pull in $1 to $1.5 billion from checked bag fees, though it might lose about $1.8 billion in market share, proving just how much the free checked bag perk has been a competitive advantage.
Bob Jordan, Southwest’s CEO, has always said that the free checked bag policy was a huge selling point for the airline. “After fare and schedule, bags fly free is cited as the No. 1 reason customers choose Southwest,” he said last July. But now, he believes the new policy will encourage more sign-ups for the airline’s credit card, as the perk doesn’t seem to attract as many new customers as it used to, with ticket fares and schedules now available everywhere.
This move is part of a bigger shift at Southwest, which also announced it would end its open seating policy in favor of offering paid upgrades for perks like extra legroom, which puts it more in line with the competition.
And, of course, rival airlines are already eyeing the situation. United Airlines CEO Scott Kirby sees it as a big change for the industry, while Delta’s president, Glen Hauenstein, was more blunt, saying the new policy opens the door for more customers to consider other airlines.
While the policy doesn’t go into effect until May, it’s already clear that this change is going to impact how passengers choose their flights. Southwest’s iconic “free to move about the country” slogan is about to get a little more expensive.
