Southwest Airlines is changing its rules. They used to let you check two bags for free. But now, most people will have to pay for their bags. This change starts on May 28.
Only special customers and those on business fares will still get free bags. This big change is to help the airline save money. It’s a big change for them and for travelers.
Now, only special members get to check one bag for free. The airline hasn’t said how much it will cost for the first and second bags. But they are making these changes to save money.
Before, you could check two bags for free, each up to 50 pounds. Now, they are cutting costs in other ways too. They are making their business leaner by laying off 15% of their workers.
Key Takeaways
- Southwest Airlines will end its free checked bags policy starting May 28.
- Only A-List loyalty members and business fare passengers will retain some free checked baggage perks.
- New charges for the first and second checked bags for non-reward members have not been disclosed.
- Southwest is laying off 15% of its corporate workforce to save approximately $210 million in 2023.
- The airline is introducing new basic fares and will allow for assigned seating and extra legroom options.
Introduction to Southwest Airlines’ Policy Change
Southwest Airlines has been a big name in flying for over 50 years. Now, they’re changing how they handle bags. Starting May 28, they’ll no longer offer free checked bags. This change is to make more money and keep up with the times.
Before, Southwest was known for letting you check bags for free. This was different from big airlines like Delta and United. But now, they want to make more money from baggage fees. In 2023, U.S. airlines made over $6 billion from these fees.
Southwest thinks this change could make them $1.5 billion a year. But they might lose up to $1.8 billion in customers. Business Select and Anytime fares still let you check two bags for free. But Wanna Get Away and Wanna Get Away Plus tickets will cost extra for bags.
Southwest is also changing how you sit. For the first time, they’ll sell specific seats. This change will be complete by 2026. It will offer more choices in seating, along with the new bag policy.
| Fare Type | Checked Bags Included | Baggage Fee (per bag) |
|---|---|---|
| Business Select | 2 Free | $0 |
| Anytime | 2 Free | $0 |
| Wanna Get Away | 0 | $35 |
| Wanna Get Away Plus | 0 | $35 |
Southwest is making these changes to stay competitive. They face higher costs like fuel and labor. The new policy might upset some customers. But it’s a move to help the airline’s finances in the long run.
Reasons Behind Southwest Airlines Removing Free Check Bags
Southwest Airlines has stopped giving free checked bags. This change has caused mixed feelings among travelers. It’s part of a bigger plan to stay competitive and keep the airline financially strong.
Influence of Elliott Investment Management
Elliott Investment Management played a big role in this change. They have a lot of influence over Southwest. They want to make the airline more efficient and profitable.
By introducing southwest airlines checked bag fees, they hope to make more money. This will help the airline stay stable in tough times.
Economic Factors and Profitability Goals
Southwest Airlines is facing tough financial times. They now charge for the first and second checked bags. This change is expected to bring in $1.5 billion a year.
But, they might lose $1.8 billion from customers who liked the free baggage policy. The airline expects to make 2% to 4% more money per seat mile. This is less than they thought they would.
The airline mainly flies within the U.S. and doesn’t have international flights. They only use Boeing 737s, which limits their options. Still, they’re following the lead of other big airlines like JetBlue and American Airlines.
To save money, Southwest is cutting jobs. They’re letting go of 1,750 corporate workers. This will save $210 million in 2024 and $300 million by 2026.
These changes are meant to help Southwest stay profitable. But, they might make the airline less special in the market.
Impact on Frequent Flyers and Loyalty Members
Southwest Airlines has changed its baggage policy. This will upset many loyal customers. Starting May 28, 2025, free checked bags will only be for some. This change is big for those who loved Southwest’s friendly ways.
Changes for Rapid Rewards Members
Rapid Rewards members will face a new system for checked bags. A-List Preferred members get two free bags. But A-List members will only get one. Also, Southwest Airlines Rapid Rewards Credit Card holders can still get one free bag per trip.
Business Select Fare Perks
Business Select fare buyers and frequent flyers have some good news. They still get two free checked bags. This helps those who spend a lot and fly often.
But, there’s a new Basic fare that takes away some perks. It also means less free baggage. And, award ticket prices might change. This could make Southwest more like United, American, and Delta. Southwest needs to think carefully about these changes.
Details of the New Baggage Policy
Southwest Airlines is changing its free checked bags policy in 2025. Starting May 28, 2025, there will be new luggage charges. Some customers will still get free bags, but others will have to pay more.
Implementation Date and Ticket Purchase Requirements
Remember May 28, 2025, when the new policy starts. People buying tickets after this date will face new baggage fees. But, Business Select ticket holders and top Rapid Rewards members will still get free bags.
Potential Fees and Charges
The new policy has different fees for everyone. Basic fare passengers won’t get free bags and will pay based on when they check in. But, Rapid Rewards A-List Preferred and Business Select members can still check two bags for free. A-List members get one free bag.
Southwest Airlines Rapid Rewards Credit Card holders also get a free checked bag. This change might seem tough, but it’s meant to help the airline and its customers.
Comparisons with Other Airlines
Southwest Airlines changed its southwest baggage policy on May 28. Now, it’s more like other big U.S. airlines. For over 50 years, they gave two free checked bags. This was a big part of what made them friendly to customers. But, this policy is now ending.
Let’s look at how the new southwest airlines luggage restrictions compare with other airlines:
| Airline | First Checked Bag Fee | Second Checked Bag Fee |
|---|---|---|
| Southwest Airlines | $35 | $45 |
| American Airlines | $35 | $45 |
| Delta Air Lines | $35 | $45 |
| United Airlines | $35 | $45 |
American Airlines started charging for checked bags in 2008 at $15. Now, it’s $35. This change has made a lot of money for airlines. In 2023, U.S. airlines made almost $7 billion from baggage fees. Worldwide, it was over $30 billion.
But, Southwest still offers some free bags. Rapid Rewards A-List Preferred members and Business Select fare customers get two free bags. A-List members and those with certain credit cards get one free bag. This change shows Southwest is keeping up with the times.
Customer Reactions and Feedback
Southwest Airlines changed its baggage policy recently. Some people get it, but others are upset. They feel the airline is breaking its promise of free bags.
Loyalty and Brand Value
Starting May 28, Southwest will charge for checked bags. This change has upset many loyal customers. They feel the airline has let them down.
There’s a big worry about the airline’s value. Will the extra money from fees make up for losing customer trust?
Alternative Preferences
Now, customers are looking at other airlines. They want better deals on bags. This is making the competition fiercer.
But, other airlines like Delta and United are facing big drops in value. Southwest’s stock went up by over 9% after the change. This shows mixed feelings from customers.
| Airline | Baggage Fees Collected in 2023 | Share Value Change |
|---|---|---|
| Southwest Airlines | $73 million | +9% |
| American Airlines | $1.4 billion | -32% |
| United Airlines | $1.2 billion | -22% |
| Delta Air Lines | $985 million | -24% |
Economic Implications for Southwest Airlines
Southwest Airlines now charges for bags, a big change from before. This could make a lot of money, thanks to many customers. But, it also has risks and downsides.
Looking at southwest stock, we see both good and bad. Baggage fees could bring in $1.5 billion a year. But, there’s a chance to lose $1.8 billion in market share if customers get upset.
Projected Revenue Increase
New baggage fees start on May 28, 2025. U.S. airlines made $5.5 billion from fees in the first three quarters of 2024. If Southwest gets similar money, it could do well financially.
Frequent flyers and those who pay more might not mind as much. A-List Preferred and Business Select get two free bags. A-List and credit card holders get one free bag, which might keep some customers happy.
But, Southwest’s profits might not grow as much as hoped. Unit revenue could only go up 2% to 4% this quarter. Costs for things like fuel and maintenance are also going up.
In short, charging for bags might help southwest stock but could hurt customer loyalty. It’s a tricky balance between making money and keeping customers happy.
How to Cope with the New Baggage Fees
Southwest Airlines changed its “Bags Fly Free” policy on May 28, 2025. Now, there are new baggage fees. Here’s how to still save money when you travel.
Considerations for Packing Smart
Packing smart can help you avoid extra fees. Here are some tips:
- Opt for Carry-Ons: Try to carry all your stuff in a carry-on. This way, you don’t pay fees.
- Roll, Don’t Fold: Rolling clothes saves space and reduces wrinkles. It lets you pack more.
- Pack Dual-Purpose Items: Choose clothes and accessories that can be used in different ways. This means you need less stuff.
- Wear Bulky Items: Wear your heaviest shoes and jackets on the trip. It saves space in your luggage.
Memberships and Credit Card Benefits
Using memberships and credit card perks can also help:
- Rapid Rewards Members: A-List Preferred members and Business Select fare customers get two free checked bags. If not, think about upgrading your status.
- Credit Card Perks: Rapid Rewards credit card holders get a credit for one free checked bag. Use these cards for your flights.
- Travel Rewards Programs: Check out travel rewards programs with your credit cards. Some offer free checked bags or discounts on fees.
Knowing and using these benefits can save you a lot on baggage fees. Plan ahead to enjoy your trip without breaking the bank.
Southwest Airlines’ Future Plans
Southwest Airlines is looking to the future with big plans. They have made southwest changes to get stronger in the market.
Starting May 28, Business Select fare passengers and Rapid Rewards A-List Preferred Members get two free checked bags. But, they will now charge for checked bags. This move is expected to make $1.5 billion a year. Yet, they might lose $1.8 billion from people who don’t want to pay for bags.
Southwest Airlines is cutting 1,750 jobs, which is 15% of their corporate staff. This makes them leaner and more agile. They hope to save $210 million in 2024 and $300 million by 2026. Experts say these southwest changes will help them handle market ups and downs better.
Shares of Southwest Airlines went up over 9% after they announced the new luggage fee policy. They also said they will cut capacity by 2%. These southwest news updates show they are getting ready for the future.
Southwest Airlines wants to grow by targeting new routes. They are doing this while facing competition from Delta, United, and JetBlue. Despite the challenges, Southwest is ready to change and improve in the coming years.
Conclusion
Southwest Airlines is changing its service by adding baggage fees for the first time in over 50 years. This big change is like what other airlines do. But it means saying goodbye to the free bags policy that many customers loved.
Starting on May 28, 2025, most people will have to pay for their bags. Only the most loyal flyers and some special fares will still get free bags.
This change could make a lot of money for Southwest Airlines. Last year, U.S. airlines made over $5 billion from bag fees. Southwest wants a piece of that pie.
Southwest’s rivals made about $5.5 billion from bag fees. Southwest hopes to make more money, even if it means cutting 1,750 jobs. This is about 15% of their corporate staff.
But, this change might make some customers unhappy. Those who always got free bags might choose another airline. Southwest’s leaders say this change is needed to meet new customer needs and stay competitive.
It’s not clear if this change will bring in more money and attract new customers. But it definitely ends an era for Southwest Airlines and its famous free bag policy.
FAQ
When does the new Southwest Airlines baggage policy start?
It starts for tickets bought on or after May 28.
Will any passengers still get free checked bags under the new policy?
Yes, some will. High-tier loyalty members and Business Select fare customers keep their bag perks.
What are the reasons behind Southwest Airlines removing free checked bags?
They want to make more money and cut costs. Elliott Investment Management pushed for this change.
How will the new policy impact frequent flyers and loyalty members?
Some loyalty members will still get bag perks. But others will lose benefits. This might change how they travel and feel about the airline.
How do Southwest’s new baggage fees compare with other airlines?
Now, Southwest’s fees are more like those of other big U.S. airlines. They all charge for checked bags.
How have customers reacted to Southwest’s baggage policy changes?
People have mixed feelings. Some worry about losing the free bag offer. Others might choose other airlines with better deals.
What are the potential economic implications for Southwest due to the new baggage fees?
The fees will bring in a lot of money. But, Southwest might lose customers who liked the free bag deal.
What strategies can travelers use to cope with the new baggage fees?
Pack smarter and use credit cards or airline memberships. They might offer fee waivers or discounts.
What future plans does Southwest Airlines have in light of these changes?
Southwest aims to improve services and fares. They also plan to grow into new markets. They want to keep customers happy and stay competitive.