Southwest Airlines has given in to pressure to increase revenue and, for the first time, will charge passengers for checked bags. The discount carrier had held out while its rivals raked in $5 billion from checked bags last year.
The company announced the move as a way to drive revenue growth while rewarding its most loyal customers. Southwest will continue to offer two free checked bags to Rapid Rewards A-List Preferred Members and Customers traveling on Business Select fares. A-List Members and other select customers can check one bag for free. Southwest will credit one checked bag for Rapid Rewards Credit Cardmembers.
Customers who do not qualify for these free bag options will be charged for their first and second checked bags. Changes will apply to flights booked on or after May 28, 2025.
“We have tremendous opportunity to meet current and future customer needs, attract new customer segments we don’t compete for today, and return to the levels of profitability that both we and our shareholders expect,” Bob Jordan, Southwest Airlines CEO said in a statement.
“We will do all this while remaining focused on what’s made us strong—our people and the authentic, friendly, and award-winning customer service only they can provide.”
No more open seating
Southwest recently announced another change to a long-standing practice. It was the last airline to adopt assigned seating.
According to CNBC, Southwest dropped its free checked bags under pressure from Elliott Investment Management, which last year took a large enough stake in the airline to win five board seats. It pushed for an end to passenger perks like free checked bags, changeable tickets and open seating.
American Airlines became the first airline to charge a checked bag fee, doing so in 2008, at the start of the financial crisis that proved to be an existential threat to airlines when business travel dropped sharply.
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