Dallas-based Southwest Airlines has announced a major policy change, ending its long-standing free checked baggage policy starting May 28. Moving forward, only A-List loyalty program members and business passengers will be exempt from baggage fees. This decision marks a significant shift for the airline, which has long promoted its “Bags Fly Free” policy as a key differentiator from competitors.
Southwest CEO Bob Jordan stated that these changes aim to attract new customer segments and restore profitability. While the airline has not yet disclosed baggage fees, industry experts predict an immediate financial boost, as Southwest handles two to three times more checked bags than other carriers. Following the announcement, Southwest’s stock surged nearly 6% in premarket trading.
In addition to baggage fees, Southwest is making other strategic shifts. The airline is eliminating open seating, a move influenced by customer demand for allocated seating, which has been a primary reason passengers switch to competitors.
Southwest is also expanding its sales channels, announcing that its tickets will now be available on Expedia to attract more travelers. Additionally, starting in May, the airline will introduce “basic economy” fares—low-cost tickets with restrictions—aligning with industry trends to offer tiered pricing options.
These changes signal a new era for Southwest Airlines, focusing on revenue growth while adapting to evolving consumer preferences in the competitive airline industry.
