Southwest Airlines is officially ending its long-held “Two Bags Fly Free” policy, a hallmark that helped distinguish the airline from competitors for decades. Starting May 28, passengers will pay $35 for the first checked bag and $45 for the second on newly booked flights.
The policy change follows mounting financial pressures in the post-pandemic travel market. With rising fuel and labor costs, shifting travel habits, and increasing domestic airline capacity, Southwest has joined other carriers in reevaluating its business model.
While all passengers will now face baggage fees, exceptions remain. Business Select fare holders and top-tier A-List Preferred loyalty members can still check two bags free. All loyalty members and airline credit card holders will be allowed one complimentary checked bag.
Southwest’s decision aligns its baggage fees with those of legacy carriers like United and Delta, keeping them lower than those of ultra-low-cost competitors such as Spirit and Frontier. Still, the move marks a significant shift for an airline that once used its no-fee baggage policy as a competitive advantage.
In addition to baggage fees, Southwest plans to eliminate unassigned seating, another signature feature. Passengers will soon pay extra to select seats or upgrade for perks like additional legroom.
The airline had previously resisted charging for baggage, citing research that showed the policy attracted demand. But with profits dwindling and external pressure from activist investors like Elliott Investment Management, Southwest is moving toward a more traditional revenue model.
U.S. airlines collected over $7 billion in baggage fees last year. Southwest’s share was only $83 million, dwarfed by competitors, some of which earned over $1 billion each from luggage fees alone.
Source: Business Insider