The End Of An Era: Southwest Introduces Checked Baggage Fees

I can’t think of any other sentence to describe what is going on at Southwest. The Texas-based airline is seen in the industry as the pioneer of the low-cost model. A model that has been copied and emulated across the globe by countless airlines. One of the pillars of the Southwest experience is soon to disappear: checked bags will no longer be included in fares. Let’s get into the details of what is soon to change.

How Are Bag Fees Changing When Traveling Southwest?

Things are changing fast at Southwest. The airline has been the only US carrier to stand firm on not charging passengers checked baggage fees. That is, sadly, all to change very soon.

Southwest will be aligning with allo other US major carriers as it will start applying baggage fees. Also the carrier will be introducing new fare levels, in what is to all effects the biggest shift in the airline’s pricing and service policy in decades.

Let’s go over what is going to change starting May 28th 2025, how and when so that you are fully informed:

Checked Bag Changes:

• Only A-List Preferred and Business Select will continue to get 2 checked bags free of additional charges.
• A-List Preferred travelers will only get one free checked bag.
• All other passengers will be charged for their first and second checked item.

Loyalty Points Accrual Changes:

• Changes recently introduced will remain untouched, which means that:
  • Business Select fare earn 14x fare in Rapid Rewards points
  • Anytime fare earn 10x fare in Rapid Rewards points
  • Wanna Get Away Plus fare earn 6x fare in Rapid Rewards points
  • Wanna Get Away fare earn 2x fare in Rapid Rewards points
• Variable redemption will also apply to flights depending on the demand. Therefore making some flights more inaccessible to purchase with miles

Sale Channels Changes:

• Southwest flights will also go on sale on Expedia. Possibly making tickets known to a broader audience.

Flight Credits Changes:

• Flight credits which had very long expiration will now expire much faster, one year or earlier, depending on the fare of the ticket.

Now that’s the crux of the matter now let’s delve deeper into why Southwest is applying these changes and what else should we expect.

Why Has The Airline Changed So Many of Its Policies so Rapidly?

I’ll start off with asking you a question. Why does any airline, or business for that matter, do anything? For money of course. Southwest held out much longer than any of the other US low-cost carriers in regard to the type of changes it is applying.

The straw that broke the camel’s back, along with the much more uncertain economic outlook in the US, was the investment firm Elliot entering the airline’s equity. Once on the board of directors Elliott’s members started pushing for change and rapid change. Changes that would generate rapid increases in profits that had been wavering over the past months. Eventually the new investor got what it pushed for.

The changes mentioned above all have the goal to generate a rapid increase in revenue, while also incentivizing passengers on spending more for fares that ensure more perks.

The era of free bags on basic fares is gone. Unfortunately for the many passengers who dearly love Southwest as a brand for its unique approach to business will see the airline become more and more as an any other carrier.

Getting Southwest listed on Expedia sounds like the attempt to get new streams of new passengers to try and limit the damage of those who might opt to travel with other carriers in the future.

Other Changes That Might be Coming Southwest’s Way

Well if Southwest is aligning with other “normal” airlines it is likely to see the airline further standardize with its peers. There will be a stronger focus on the carrier’s frequent flyer program Rapid Rewards. The airline will incentivize higher spending on fares and ancillary services in exchange for points multipliers. Also it wouldn’t be at all surprising if the airline were to start seeking a more lucrative Credit Card deal now that there are fares and services sold at a premium that could be appealing for a premium card issuer.

This seems to be all inevitable, unless something unexpected happens anytime soon.