Source: CNBC
Starting Wednesday, Southwest Airlines will begin charging passengers for checked baggage for the first time in over 50 years. This significant policy shift marks the end of Southwest’s longstanding “two bags fly free” policy, a feature that has set the airline apart from its competitors.
Under the new pricing structure, passengers will pay $35 for their first checked bag and $45 for a second checked bag if they purchase tickets after the change takes effect. Travelers who booked their flights before this new policy was announced will still enjoy the two free checked bags, as Southwest has committed to honoring the fare conditions of those tickets.
Why Is Southwest Changing Its Baggage Policy?
As per recent estimates, U.S. airlines collectively earned nearly $7.3 billion from baggage fees last year. This revelation sheds light on why Southwest, under mounting pressure from investors like Elliott Investment Management, has chosen to modify its longstanding stance against checked bag charges. The company has also undergone significant operational changes, including the introduction of basic economy tickets and the removal of open seating.
Details of the New Policy
Beginning on Wednesday, charges will apply to the following fare types:
- Basic
- Wanna Get Away Plus
- Anytime fares
However, not all passengers will incur these fees. Travelers with top-tier status in Southwest’s Rapid Rewards Loyalty Program and those flying on higher-tier Business Select fares will continue to enjoy the benefit of checking their first two bags for free. Additionally, customers who hold a Southwest co-branded credit card and have booked their flight alongside companions on the same credit card may also avoid charges for their first checked bag.
Introduction of Basic Economy Tickets
Alongside the baggage fees, Southwest is set to unveil a new basic economy fare option, similar to offerings from competitors such as Delta and American Airlines. These tickets will have restrictions, including no ability to make changes and a reduced boarding priority. Fare credits will also have a shorter lifespan, expiring in just six months, compared to the usual 12 months offered in other fare levels.
Transitioning to Assigned Seating
For decades, Southwest’s open seating philosophy has appealed to many frequent flyers. However, passengers can expect this to change, as the airline plans to transition to assigned seating for flights in 2026. This move follows market trends seen across the airline industry, aimed at maximizing revenue from seating assignments.
Southwest’s Anticipated Adaptations
In anticipation of the changes, Southwest executives expect an increase in the number of carry-on items, as the free carry-on policy remains unchanged. As part of their preparation, they are equipping their aircraft with larger overhead bins to accommodate the potential rise in carry-on luggage. Furthermore, personnel will be provided with mobile bag tag printers to facilitate smoother processes at the airport.
Customer Reactions and Future Outlook
Despite the backlash on social media regarding the fees, Southwest’s CEO, Bob Jordan, reported that there has been no significant decline in bookings following the announcement. He expressed confidence that the new policy would not deter loyal customers, stating, “We have seen no book-down on that day or after that day.” Nevertheless, the airline faces a challenging environment as they balance revenue needs against customer satisfaction.
Frequently Asked Questions
What are the new baggage fees for Southwest Airlines?
Southwest Airlines will charge $35 for the first checked bag and $45 for the second checked bag starting Wednesday.
Will passengers who booked before the change incur fees?
No, passengers who booked before the new policy takes effect will still enjoy the two free checked bags as per the original fare conditions.
Are there any exemptions from the baggage fees?
Yes, passengers with top-tier status in Southwest’s Rapid Rewards program, Business Select fare holders, and certain credit card holders won’t incur baggage fees for their first bag.
What changes are being made to seating arrangements?
Southwest is planning to transition to assigned seating for flights in 2026, marking a significant shift from their historical open seating model.
What are basic economy tickets?
The new basic economy tickets will come with restrictions, including no ability to change bookings and a shorter expiration for fare credits compared to other fare types.