Big news for travelers: Southwest Airlines is ending its iconic “bags fly free” policy. Yep, the budget carrier that built its brand on letting passengers check two bags without extra fees is finally caving to industry norms. Starting May 28, most travelers will have to pay up to check their luggage.
Here’s the deal: If you’re not a top-tier Rapid Rewards member, don’t have a Southwest credit card, or aren’t flying Business Select, you’ll be hit with bag fees. The airline hasn’t dropped the exact pricing yet, but it’s clear this move is all about boosting revenue.
Why the Change?
Southwest’s CEO, Bob Jordan, says the shift is about staying competitive and meeting shareholder expectations. Translation: They need to make more money. The airline has been under pressure from activist investors, like Elliott Investment Management, to step up its financial game. And let’s be real—Wall Street has been side-eyeing Southwest for years, arguing they were leaving cash on the table by not charging for bags like every other major U.S. airline.
But here’s the kicker: Southwest estimates bag fees could bring in $1.5 billion annually. However, they also admit it might cost them $1.8 billion in lost business from travelers who loved the free bag perk. It’s a risky bet, but Southwest is banking on the fees outweighing the losses.
Who Still Gets Free Bags?
Not everyone’s losing out. Rapid Rewards A-List Preferred members and Business Select flyers will still get two free checked bags. A-List members and certain credit cardholders will get one free bag. Everyone else? Time to open your wallet.
What’s Next for Southwest?
This isn’t the only big change Southwest is making. The airline recently announced its first major layoffs in 53 years, cutting 1,750 corporate jobs (about 15% of its workforce). They’re also rolling out new fare options, including a basic economy-style ticket, and introducing extras like more legroom and red-eye flights.
What Do Travelers Think?
Reactions are mixed. At Chicago Midway Airport, traveler Dorothy Severson said, “I’d rather have the free checked bags, that’s for sure. It’s one of the main reasons I still fly Southwest.” Meanwhile, competitors like Delta are already eyeing Southwest’s customers. Delta’s President, Glen Hauenstein, said, “Clearly, there are some customers who chose them because of that, and now those customers are up for grabs.”
The Bigger Picture
Southwest’s move comes as the airline industry faces economic headwinds. Delta recently slashed its earnings forecast, citing weaker demand, and other carriers like United, JetBlue, and American Airlines have seen their stocks plummet this year. Southwest itself lowered its revenue expectations, signaling tougher times ahead.
So, what does this mean for you? If you’re a loyal Southwest flyer, it might be time to rethink your strategy—or at least factor in those new bag fees. For the airline, it’s a bold play to stay relevant in a competitive market. Will it pay off? Only time (and your luggage) will tell.
Stay tuned for updates as Southwest rolls out more details. And if you’re booking flights after May 28, don’t forget to check the fine print!