Southwest wouldn't really start charging for bags — right?
Southwest Airlines insists its hallmark “bags fly free” policy is not on the chopping block, even as the carrier prepares to unveil scores of details in the coming days about sweeping changes to some of its longest-standing policies.
Next week, executives at the Dallas-based carrier are expected to delve into the specifics of a massive commercial overhaul revealed this summer — one that will see Southwest end its hallmark open-seating policy and add extra-legroom seats for the first time.
Exactly when will assigned seating hit Southwest booking channels? What will its unique boarding process look like in this new era? How many new extra-legroom seats will be on Southwest planes in the future — and what type of access will A-List elite status members get?
We should know it all soon: Company leaders in July promised to detail the nuts and bolts of the changes when they hold their annual meeting with investors.
That meeting is set for next week, and is sure to be of the utmost interest for airline industry insiders and frequent Southwest flyers alike.
Speaking to analysts in July, CEO Bob Jordan was frank about the scope of the changes planned for the company as it aims to boost its lagging financials.
“You’ve got to be willing to challenge everything that’s not fundamental to you as an airline,” Jordan said.
But that hard look at the business has also fueled plenty of speculation over the airline’s popular free-baggage policy, even as executives insist it's here to stay.
Speculation swirls over 'bags fly free'
After Southwest announced the end of its 50-year-old open-seating policy in July, droves of TPG readers commented on the story on our Facebook page, with some speculating that new add-on fees for luggage might be the next proverbial "shoe to drop."
“Soon they will start charging for bags,” one reader predicted.
Longtime aviation journalist and self-proclaimed Southwest loyalist Benét J. Wilson offered her own take in an op-ed penned in the wake of the airline's announcement about assigned seating.
“At this point it feels like anything is possible,” Wilson wrote. “Only time will tell what the carrier’s evolution will look like and what it will become."
Southwest: No bag fees in the works
To be clear, Southwest executives were adamant in July: No bag fees are in the works.
In fact, free bags are among the top three reasons customs choose Southwest, Jordan told analysts, contrasting the airline's lenient policy with the widespread (and rising) checked bag fees at its competitors — some of which also charge customers for full-size carry-on bags on certain tickets.
Yet, in August, a Bloomberg report said the carrier started surveying customers on their appetite for paid bags, reigniting speculation.
Then, this month, the company went through additional upheaval when leadership made concessions to a group of activist investors who took a stake in the company earlier this year, demanding changes to boost Southwest's financial performance.
Even today, though, the carrier is steadfast: No baggage policy changes are on the horizon.
“There’s no work currently underway to change our industry-leading two bags fly free policy,” a Southwest spokesperson told TPG Tuesday, noting the company regularly tracks customer sentiment “on many aspects” of its business “to ensure we remain competitive and current on the preferences of our customers.”
That much is no secret: Southwest is highly data-driven, having cited exhaustive customer surveys in touting its new seats planned for new jets starting in 2025 and, indeed, in deciding to make the shift away from open seating.
Even financial analysts don't back bag fees
There's good reason for Southwest to stick with free bags, too, financial analysts told TPG this week — and not just to keep customers happy in the short term.
“We believe bag fees will be viewed as a ‘value grab’ and erode Southwest’s brand,” said Savanthi Syth, industry analyst at Raymond James. “We don’t believe this is something Southwest should consider at this time."
“I think that they should hold their powder on baggage,” concurred William Swelbar, chief industry analyst at Swelbar-Zhong consultancy. “I would much rather see them focus a lot on the product inside, whether it be the [seats], whether it be other ways to bundle services, that kind of thing, before they take the leap into baggage.”
Seat details (and more) expected soon
To Swelbar’s point, Southwest has plenty of big changes to talk about in the coming days, as it is.
Based on what executives said on July's earnings call, we expect to soon learn details such as:
- The timeline for the rollout of assigned seating; this summer, executives only confirmed they’d start selling extra-legroom seats at some point in 2025.
- What the new boarding process will look like, and how similar it will be to the current “calm” process that, Jordan said, the carrier hopes to mimic to the greatest extent possible.
- How A-List status holders might benefit with boarding and seating perks under the new setup: "I think it’s safe to assume that there will be seating benefits that are associated with that,” Executive Vice President Ryan Green said in July.
- What the cabin layout will look like, and how many extra-legroom seats might be available on aircraft.
- Plans for the phasing-in of red-eye flights by summer 2025.
All of this is a big undertaking for an airline hoping to get back to the stellar financial performance that the carrier had been known for throughout most of its history.
“I don’t think this is outpatient surgery. I think this is inpatient,” Swelbar quipped. “And there’s a lot more work to do.”
In the meantime, if you’re flying with Southwest, you can still enjoy that free checked (and carry-on) bag. And it appears that should continue — for the foreseeable future, at least.
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
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There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.