In a move that marks a major transformation in its service model, Southwest Airlines has announced the introduction of checked bag fees, a long-standing complimentary perk that has defined the airline for decades. Effective for flights booked on or after May 28, passengers will face a fee of $35 for the first checked bag and $45 for the second bag. However, travelers who purchased their tickets before this announcement will continue to enjoy the benefit of two free checked bags, as stated by the airline.
While this new fee structure applies to many passengers, there are notable exceptions. Members of the A-List tier of Southwest's Rapid Rewards loyalty program, holders of the airline's branded credit cards, and those flying on business fares will not incur these new charges. This strategy aims to retain loyal customers while aligning with the pricing models of other major airlines.
Southwest's new fees are consistent with the pricing strategies of other airlines. Major carriers such as Delta Air Lines, American Airlines, and United Airlines typically charge between $35 to $40 for the first checked bag. Budget airlines like JetBlue Airways and Frontier Airlines have varying fees based on factors like purchase method and travel dates, adding complexity to the baggage fee landscape.
Historically, Southwest Airlines has differentiated itself by offering free checked bags since its inception nearly 60 years ago. This policy was maintained even as competitors began introducing and increasing fees, allowing Southwest to carve out a unique niche in the airline market. The airline’s slogan, “bags fly free,” has become a hallmark of its brand identity and advertising campaigns.
The introduction of checked bag fees is expected to significantly enhance Southwest's revenue, especially considering that the airline handles two to three times as many checked bags as its competitors. Despite previously not charging for the first two bags, Southwest generated $83 million in baggage fees in 2024, according to the Department of Transportation. In comparison, other airlines collected substantially higher sums, with American Airlines bringing in $1.5 billion and United and Delta following closely behind.
Southwest Airlines is facing increasing pressure to enhance its profitability, particularly since activist investor Elliott Investment Management acquired a $1.9 billion stake in the airline last year. The carrier has already announced the discontinuation of its open-seat policy in 2026 and plans to retrofit its aircraft with extra legroom seats available for an additional fee. This move is in response to customer feedback, as many passengers cite open seating as a primary reason for switching to competing airlines.
In addition to the new baggage fees, Southwest is evolving its ticket sales strategy. Traditionally limited to its own website, the airline has begun selling tickets on platforms like Expedia to attract a broader customer base. Starting Wednesday, Southwest will also introduce “basic economy” fares, a low-cost ticket option laden with restrictions. This new fare class is set to replace the airline's popular “Wanna Get Away” fare and aligns with industry trends to compete with the low prices offered by budget airlines.
As Southwest Airlines navigates this significant shift in its operational model, the introduction of checked bag fees, changes in ticket sales, and adjustments to seating policies highlight the airline's strategy to remain competitive and profitable in an evolving aviation landscape.
