Southwest Airlines has announced that starting May 28, 2025, it will no longer offer free checked bags to all customers.
This marks the end of a decades-long policy that set the airline apart from other carriers. The change is part of a broader strategy aimed at improving profitability and aligning more closely with industry practices.
New Baggage Fee Structure:
- Two Free Checked Bags: Available to Rapid Rewards A-List Preferred members and passengers traveling on Business Select fares.
- One Free Checked Bag: Granted to Rapid Rewards A-List members and holders of Southwest’s Rapid Rewards credit card.
- Paid Checked Bags: All other passengers will incur fees for checked baggage. The specific fee amounts have not been disclosed yet.
Additional Changes Effective May 28, 2025:
- Introduction of Basic Economy Fare: Southwest will launch a new Basic fare, offering its lowest-price option with certain restrictions.
- Seat Assignment Fees: The airline plans to implement charges for seat assignments and extra-legroom seats.
- Flight Credit Expirations: Flight credits for Basic fares will expire six months after issuance, while credits for all other fares will expire after one year.
These policy shifts come amid pressure from activist investors seeking improved financial performance. Southwest aims to increase its operating margin from 2% to 10% by 2027.
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