Southwest Airlines has announced it will begin charging for checked bags starting May 28, after ditching its long-standing “bags fly free” policy. The airline’s A-List loyalty program members, branded credit card holders, and business fare passengers will be exempt from the fees.
The move is a significant shift for Southwest, which has offered free checked bags since its inception about 60 years ago. This change will likely boost the airline’s bottom line due to its high volume of checked bags compared to competitors. In 2023, Southwest collected $73 million in baggage fees, despite not charging for the first two checked bags.
While some customers may be alienated by this change, analysts believe it won’t significantly impact revenue if Southwest maintains competitive pricing. Competitors such as Delta and United have already implemented similar policies without seeing significant customer losses.
Southwest has made several other changes since its last major overhaul, including introducing assigned seating, premium seats, and red-eye flights. The airline is also rolling out “basic economy” fares, which will be sold on Expedia starting May 28. This move aims to attract more customers while increasing revenue through higher ticket prices for passengers who opt for these restricted fares.
The change in policy has sparked reactions from industry peers, with Delta CEO Ed Bastian saying it could help his airline gain market share. United CEO Scott Kirby predicted that the shift would benefit all airlines, calling it a “big deal.” Shares of Southwest soared over 6% in Tuesday trading following the announcement.
Source: https://edition.cnn.com/2025/03/11/business/southwest-airlines-checked-baggage/index.html