Shocker! Bags to no longer fly free on Southwest for most customers, award devaluations coming

Bags will no longer fly free on Southwest Airlines — unless you’re willing to pay up for a high-priced fare, boast elite status or carry one of its cobranded credit cards.

In an announcement that figured to shake the foundation of its relationship with customers, the Dallas-based carrier on Tuesday announced it will end its two free checked bags policy later this spring.

Starting with bookings made on May 28, most Southwest passengers will have to pay for every checked bag.

It’s a seismic shift away from a standout policy that the airline — as recently as last fall — made clear was among its top differentiators from other U.S. airlines.

There will be some exceptions: Southwest A-List elite status members will get their first checked bag free. So will Rapid Rewards loyalty members who carry a Southwest credit card.

Two small subsets of Southwest’s customer base will retain their right to two free bags: top-tier A-List Preferred members and passengers flying on the carrier's highest-priced Business Select fares.

But for all other customers, checking a bag will cost extra — just as it does on nearly every other U.S. airline.

Why Southwest is ending free checked bags

In a statement to TPG, Southwest said it was “evolving rapidly,” implementing new initiatives that “support business objectives and create choice for customers.”

Not mentioned in Tuesday’s statement: the immense pressure the carrier has faced from activist investor group Elliott Investment Management, which last year gained a stake in the company and in recent months upped its influence on the airline, which has suffered from less-than-stellar earnings in recent years.

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Un-Southwest-like changes

In just the last month, Southwest laid off 15% of its corporate workforce — a move once unthinkable for a company known, starting under longtime executive Herb Kelleher, for doing right by its staffers.

And last week TPG reported the carrier had slashed the number of points most Rapid Rewards members can earn on a Southwest flight — a change the airline specifically said last fall that it wouldn't make. (Changes to the number of points required for a redemption are coming soon, too, the carrier revealed Tuesday.)

A larger shift

All of this comes as Southwest is already preparing to ditch the open-seating policy that it was practically synonymous with. That will go away in favor of the assigned (and extra-legroom) seats found on the planes of all of its top U.S. competitors.

Together, the changes represent something of an inflection point for an airline long known for being customer- (and employee-) friendly, devoid of the add-on fees that became ubiquitous at other airlines over the last two decades — and, above all else, a brand that stood out from the competition precisely because it was different.

More specifically, the pivot on bag fees is a 180-degree shift for the airline — and a direct contradiction of what it told investors, customers and journalists alike during an hourslong presentation on its future plans just several months ago.

Yet another 180-degree shift

In September, Southwest executives laid out the finer details of its groundbreaking shift away from assigned seating, its first airline partnership with Icelandair and its plans to evolve the Rapid Rewards loyalty program to better match an adapted airline.

Yet, the carrier made clear: It had thought about ditching its “bags fly free” policy, but had determined such a move would ultimately be bad for business and likely damage its reputation with customers.

“We are passionate about those policies, in particular, two bags fly free,” CEO Bob Jordan said at the company’s Sept. 26, 2024, Investor Day.

“Not only because they're part of our history,” Jordan continued, “… but because our extensive data-driven research … shows that they are the right economic choice.”

The free-bags policy, Jordan told analysts last summer, was among the top three reasons customers choose to fly Southwest over its competitors — ranking behind only the prices it charges and the flight schedule it offers.

Wall Street analysts concurred in comments to TPG last September, saying that ending free checked bags — in the words of one prominent analyst — would likely be viewed by customers as a "money grab" that could offset any revenue gains.

Even as speculation swirled about whether the airline might ultimately ditch its free bags policy, Southwest insisted “no work” was underway to change its “industry-leading” policy.

Southwest's changes announced Tuesday

But half a year later, the policy is now set to change.

Jordan characterized the move in a statement Tuesday: “We have tremendous opportunity to meet current and future customer needs, attract new customer segments we don’t compete for today," he said, "... and return to the levels of profitability that both we and our shareholders expect."

Southwest's new checked bag fees

Under Southwest’s new bag policy, passengers who purchase a Wanna Get Away, Wanna Get Away Plus or Anytime fare will have to pay for any checked bag — with a few exceptions.

A-List elite status members will get one free checked bag, as will cobranded credit card holders.

A-List Preferred members and passengers who purchase a Business Select ticket will get two free bags.

The changes will apply to flights booked beginning May 28. The carrier did not immediately announce pricing for its bag fees, or detail any plans to charge customers for full-size carry-on bags — another ancillary fee that's grown in prominence across the airline industry in recent years.

It’s also not yet clear how, or if, those policies might evolve once the carrier actually switches to assigned seating — booking for which is expected to begin later this year, with the new seating policies planned to go live in early 2026.

The addition of bag fees is just the latest obstacle for passengers traveling on one of Southwest's lower-level fares. On top of slashing points-earning for Wanna Get Away and Wanna Get Away Plus tickets last week, Southwest last year revealed its standard fare customers will also not be entitled to free seat selection once its assigned seating setup begins next year.

Basic economy coming — and expiration dates

However, Southwest also plans to introduce an additional "basic" fare class, the carrier said Tuesday. These tickets will go on sale May 28. It wasn't immediately clear what restrictions those discounted tickets will come with.

Further, Southwest added that expiration dates would be coming to outstanding credits on tickets booked after May 28.

More dynamic pricing for award tickets

There was also news to digest on the loyalty front.

Southwest on Tuesday also revealed it will switch to a more “variable” redemption setup for Rapid Rewards, which will lead to higher (or lower) points prices depending on demand for a flight.

Historically, such moves toward dynamic pricing — increasingly common for airlines — have resulted in customers having to hand over more points for a highly coveted flight than they would have previously.

Bottom line

Together, Southwest said Tuesday's moves are meant to “deepen and reward loyalty between Southwest and its most engaged customers.”

But time will ultimately tell how those customers will react, particularly as the airline does an about-face on yet another core promise it affirmed as recently as a few months ago.

For now, enjoy those free bags just as you would open seating: They're not here to stay.

Related reading:

• Your complete guide to maximizing Southwest Rapid Rewards
• The best Southwest Airlines credit cards
• How to quickly earn the Southwest Companion Pass
• Southwest A-List status: What it is and how to earn it
• Maximize your airfare: The best credit cards for booking flights
• The best credit cards to reach elite status
• How to change or cancel a Southwest Airlines flight