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Southwest Airlines is making major changes to its long-standing policies, including eliminating one of its most famous perks—free checked baggage.
This shift comes after the airline also announced changes to its seating policies, ticket sales, and overall business strategy. Here’s everything you need to know about what’s changing and how it might impact travelers.
1. Southwest Will Start Charging for Checked Bags
For nearly 60 years, Southwest has offered two free checked bags per passenger—a policy that set it apart from competitors. However, starting May 28, the airline will begin charging for checked bags.
- A-List loyalty members and business fare travelers will still receive free checked bags.
- Southwest has not yet announced specific pricing for baggage fees.
2. Why Southwest Is Making the Change
Southwest CEO Bob Jordan cited the need to attract new customer segments and improve profitability. The airline is looking to align with industry standards, as most major airlines have long charged for checked baggage.
Despite its previous “Bags Fly Free” policy, Southwest still collected $73 million in baggage fees in 2023, mainly from overweight or excess luggage fees. However, this amount pales in comparison to competitors like American Airlines, which raked in $1.4 billion in baggage fees last year.
3. Competitors See an Opportunity
With Southwest eliminating free checked bags, some travelers may switch airlines. Delta CEO Ed Bastian noted that passengers who specifically chose Southwest for its baggage policy are now “up for grabs.”
Shares of Southwest (LUV) jumped 9% in premarket trading following the announcement, indicating investor confidence in the move.
4. Other Major Changes Coming to Southwest
In addition to baggage fees, Southwest has made several key changes:
- Assigned Seating: The airline will end its open seating policy by early 2026.
- Premium Seating: Southwest will introduce premium seating options, aligning with other major airlines.
- Basic Economy Fares: Starting in May, Southwest will offer lower-priced tickets with more restrictions.
- Selling Tickets on Expedia: For the first time, Southwest flights will be available on third-party platforms.
- Red-Eye Flights: The airline recently introduced overnight flights to expand scheduling options.
5. Mass Layoffs & Leadership Changes
In January, Southwest laid off 1,750 employees, marking the first mass layoffs in its history. These cuts are expected to save the airline $210 million in 2024 and $300 million in 2026.
Additionally, the company has undergone leadership changes:
- New CFO Tom Doxey (formerly with Breeze Airways) took over this year.
- Former CFO Tammy Romo and Chief Admin Officer Linda Rutherford will retire in April.
What This Means for Travelers
Southwest’s changes mark a shift toward a more traditional airline model. While some customers may welcome assigned seating and premium options, others may be frustrated by baggage fees and basic economy restrictions.