For decades, Southwest Airlines has been a beacon of traveler-friendly policies, standing out in an industry often criticized for nickel-and-diming passengers. Southwest’s “Bags Fly Free” policy – a hallmark of the airline’s identity – has been a major selling point for budget-conscious travelers and families alike. But in a seismic shift that marks the end of an era, Southwest announced on Tuesday, March 11, 2025 that they will start charging for checked baggage starting May 28, 2025. For TheWayAwayTraveler community, this news is more than just a policy change-it’s a cultural shift for an airline that has long prided itself on being different.
The End of “Bags Fly Free”
Southwest’s decision to eliminate their free checked baggage policy is a monumental change for an airline that has built its brand around transparency and customer-friendly perks. Since its inception nearly 60 years ago, Southwest has allowed passengers to check two bags for free-a policy that became a key differentiator in a sea of competitors charging for every extra pound. The Airline even trademarked the slogan “Bags Fly Free,” making it a cornerstone of its advertising and a major reason why travelers chose Southwest over other carriers.
But as of May 28, 2025, that perk will be gone for most passengers. Only elite frequent flyers (A-List and A-List Preferred members), business fare travelers, and Southwest credit card holders will retain some level of free checked baggage benefits. For everyone else, the days of packing heavy without worry are over.
Why the Change?
The decision to start charging for checked bags comes after months of pressure from activist investor Elliott Investment Management, which pushed for rapid changes to boost profitability, Southwest CEO Bob Jordan acknowledged the shift in a press release, stating that the airline needs “to meet current and future customer needs” and “return to the levels of profitability that both we and out shareholders expect.”
This move aligns Southwest with its competitors, who have long relied on baggage fees as a significant revenue stream. In 2023 alone, American Airlines collected $1.4 billion in baggage fees, United Airlines pulled in $1.2 billion, and Delta Air Lines garnered $985 million. By comparison, Southwest collected just $73 million in baggage fees last year, primarily from overweight and additional bags. Charging for checked bags could instantly boost Southwest’s bottom line, as the airline handles two to three times as many checked bags as its competitors.
The Cost of Change
While the financial benefits for Southwest are clear, the decision comes with risks. For years, Southwest executives have touted the “Bags Fly Free” policy as a major driver of customer loyalty. In a July 2023 earnings call, Jordan himself noted that “After fare and schedule, bags fly free is cited as the No. 1 issue in terms of why customers choose Southwest.”
Internal analyses presented at Southwest’s investor day in September 2024 suggested that charging for bags could generate $1 billion to $1.5 billion in revenue but risk losing $1.8 billion in market share as customers defect to competitors. Ryan Green, Southwest’s former chief transformation officer, warned that the policy change could alienate loyal customers. “The fact that free bags is a key driver of choice creates the risk that customers may choose the competition if we change the policy,” he said.
Competitors See Opportunity
Unsurprisingly, Southwest’s competitors are already capitalizing on the news. Delta Air Lines CEO Ed Bastian remarked at an investor conference that Southwest’s decision could make its customers “up for grabs.” Similarly, Delta President Glen Hauenstein noted that the policy change could benefit rival airlines as travelers reconsider their options.
For budget-conscious travelers, the elimination of free checked bags removes one of Southwest’s most compelling advantages. While the airline’s fares remain competitive, the added costs of baggage fees could make other carriers more appealing, especially for families and those traveling with multiple bags.
What This Means for Travelers
For TheWayAwayTraveler community, the shift is a reminder that the travel industry is constantly evolving-and not always in ways that benefit passengers. Here’s what you need to know:
- New Fees Begin May 28, 2025: If you book a flight on or after this date, you’ll need to pay to check your bags unless you’re an elite frequent flyer, business fare traveler, or Southwest credit card holder.
- Pricing Still Unclear: Southwest hasn’t revealed how much it will charge for checked bags, but competitors like Delta, American, and United typically charge $35 for the first checked bag.
- Loyalty Still Pays: A-List Preferred members will still get two free checked bags, while A-List members and Southwest credit card holders will get one free bag.
- Consider alternatives: With Southwest’s unique perks dwindling, it’s worth comparing fares and fees across airlines to find the best fares for your next trip.
A Cultural Shift for Southwest
Southwest’s decision to charge for checked bags is more than just a policy change-it’s a cultural shift for an airline that has long prided itself on being different. For years, Southwest stood apart from its competitors by offering transparent pricing and customer-friendly perks. But as the airline seeks to boost profitability and appease shareholders, it’s shedding some of the qualities that made it a favorite among travelers.
While the move may make financial sense for Southwest, it raises questions about the airline’s identity and its commitment to the values that have define it for decades. As COO Andrew Watterson told CNBC, “What’s changed is that we’ve come to realize that we need more revenue to cover our costs.” But at what cost to their reputation?
Final Thoughts: Adapting to a New Era of Travel
Southwest Airlines’ decision to eliminate free checked baggage marks the end of an era for budget travelers. For those of us who have long relied on Southwest’s customer-friendly policies, the change is a stark reminder that even the most beloved airlines must adapt to survive in an increasingly competitive industry.
As travelers, we need to adapt too. Whether that means packing lighter, investing in a Southwest credit card, or exploring other airlines, the key is to stay informed and flexible. After all, the joy of travel lies in the journey itself-not just the perks along the way.
What do you think about Southwest’s decision to charge for checked bags? Will it change how you travel? Share your thoughts in the comments below and don’t forget to follow TheWayAwayTraveler for more insights, tips, and stories form the world of travel.
Read Southwest Airline’s full March 11, 2025 statement here.
More like this article, see details of Spirit Airlines bankruptcy filing with this link.
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