Southwest Airlines to Implement Checked Bag Fees Starting 2025

Travelers at a bustling Southwest Airlines check-in area preparing for their flights.

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News Summary

In a significant policy shift, Southwest Airlines has announced it will begin charging for checked luggage starting May 28, 2025. This move marks a departure from its popular ‘Bags Fly Free’ policy that has attracted travelers for nearly two decades. While the exact fees remain undisclosed, industry estimates suggest first checked bags may cost around $35. Certain travelers, including loyalty program members, will still have access to free checked bags. The decision comes amid pressures to adapt to market changes and improve profitability.

Change Is in the Air: Southwest Airlines to Start Charging for Checked Bags

In a surprising twist for travelers, Southwest Airlines has announced that it will begin charging for checked luggage starting on May 28, 2025, for all new bookings. This news marks a significant departure from the airline’s long-standing tradition of “Bags Fly Free,” a policy that has made Southwest a beloved choice among fliers for nearly two decades.

What We Know About the New Policies

While the exact pricing of checked bag fees hasn’t been revealed yet, industry insiders suggest that fees for first checked bags usually hover around $35. The airline has stated that there will still be some exceptions for travelers who belong to certain categories. For instance, if you’re a Rapid Rewards A-List Preferred Member or if you purchase the Business Select fare, you can still check in two bags free of charge. Meanwhile, A-List members and holders of Southwest’s Rapid Rewards credit card will also enjoy the benefit of at least one free checked bag.

Carry-Ons and Additional Changes

As of now, there are no plans to apply fees for carry-on bags, which is good news for those who prefer to stow their gear above rather than below. But that’s not all; Southwest is also rolling out a brand-new basic economy fare that brings its own set of restrictions. With this fare, passengers will be unable to make free changes or use same-day standby tickets. Additionally, flight credits for basic economy tickets will expire after just six months if not used, while for other fares, credits will last a full 12 months.

Why the Shift?

This decision comes as Southwest Airlines seeks to adapt to changing market demands and boost its profitability amidst pressure from investors, particularly activist hedge fund Elliott Investment Management. It seems that customer booking behaviors have shifted, pushing the airline to rethink their baggage policy.

The Potential Impact

Although these changes may modify Southwest’s business model, the company aims to maintain its core identity of providing friendly and reliable service. Their CEO reassured the public that customer experience remains a priority, despite these adjustments. Reaction on the stock market has already shown some optimism, with an 11.8% increase in Southwest’s share prices during premarket trading.

What’s Next for Travelers?

Even before the new fee structure goes into effect, the airline’s recent announcements have started to affect its Rapid Rewards earning and redemption rates. While Southwest management is confident that these strategic changes could draw in new customer segments and improve profitability, they also recognize the risks of potentially losing existing customers to other airlines that still offer free checked baggage.

Travelers should keep their eyes peeled for updates and review their travel plans carefully as the new policies approach. While some may lament the end of the “Bags Fly Free” era, others might find value in the added flexibility of new fare options. The skies are changing, and it looks like it’s going to be an interesting journey ahead with Southwest Airlines!