Southwest Airlines’ checked bags will no longer fly for free anymore as it is going to introduce a fee from May 2025. Southwest airlines is going to end its long-standing policy for allowing checked baggage for free to delineate itself to being a budget carrier. On Tuesday, Southwest Airlines announced that it would start bag fees for the first time.
This comes after Southwest airlines ditched its open seating policy some months ago. Free checked bag policy has been Southwest Airlines most recognizable perks.
Southwest ending free bag policy,
One of the most popular offer of checking two bags for free, “Two bags fly free” is registered trademark on Southwest’s website.
Southwest Airlines announced that it shall begin charging for the first and second checked bag from May 28. Though this fee is not for the members of its A-List loyalty program, it credit card holders, or business class travellers.
The frequent flyers with “A-List Preferred” status shall continue to get two bags, while one fee checked bag for A-List level members and Southwest credit card holders.
Southwest Airlines on baggage fees
Bob Jordan, the CEO of Southwest said, “We have tremendous opportunity to meet current and future customer needs, attract new customer segments we don’t compete for today, and return to the levels of profitability that both we and our shareholders expect.”
As per the airline the move to do away with the baggage policy is to “deepen and reward loyalty” for its “most engaged customers.”
The Airlines is planning to introduce a basic economy fare, with additional options for assigned seating and extra legroom.
Southwest Airlines change in business model
Charging for luggage is the latest move in the budget carrier’s shake-up of its business model as it has faced pressure from the activist investing firm Elliott Management. Just six months ago, the airline said it wouldn’t start charging for bags.
In July, Southwest ended its long-standing open-seating model, which allowed passengers to choose their seats upon boarding. It also announced plans to let customers pay for seats with extra legroom.
But “two bags fly free” appeared to be an untouchable perk.
Southwest now in line with competitors
As per analysts the “two bag fly free” policy is what sets Southwest apart from its competition. They fear that removing this can reduce demand and “far outweigh any revenue gains created by imposing and collecting bag fees.”
Like its previous moves, introducing checked bag fees brings Southwest in line with its competitors.
Changes at Southwest
The airlines has issued several other decisions like not assigning free seating on all flights in the second half of 2025.
Southwest Airlines has also laid off 1,750 corporate employees corporate as part of its restructuring effort. The mass layoff was the first in the company’s history.
As Southwest continues to grapple with increasing costs low-cost competition, there is no doubt that the company’s brand identity is undergoing a major transformation.
Southwest stock
Southwest stock was up more than 8% in early trading. Though since the start of this year it has lost about 9% of its value.
