For decades, Southwest Airlines has proudly marketed itself as the only major U.S. airline that lets passengers check two bags for free. But that’s about to change. Starting May 28, the Dallas-based airline will introduce new baggage fees for most passengers, marking a significant departure from its long-standing policy.
There will be exceptions for elite frequent flyers and certain fare classes.
“Southwest has been leaving a lot of money on the table by not charging for checked bags,” KRLD Business Analyst David Johnson said. “When you look at the airline industry as a whole, baggage fees have become a huge revenue stream.”
While loyal customers will still have options to avoid the fees, the new policy means that only Rapid Rewards A-List Preferred members and Business Select passengers will continue to check two bags for free. A-List members and some Rapid Rewards credit cardholders will still get one free checked bag, but the average Southwest traveler will now have to pay up.
“Southwest is following the industry trend here,” Johnson said. “They have already started introducing overnight flights, they’re adding assigned seating next year, and now this. The airline has to find ways to stay competitive and profitable.”
Johnson noted that Southwest may also be using the new bag fees as an incentive to get passengers to book more expensive fares.
“This will push customers toward Business Select and A-List status,” he said. “They’re not just looking to make money on the bag fees; they want to boost loyalty and premium ticket sales as well.”
The airline has yet to reveal the exact pricing for the new fees, but Johnson expects them to be comparable to what other airlines charge.
“I wouldn’t be surprised if we see fees starting at $35 or $40 per bag,” he said. “At the end of the day, Southwest had to make this change. It’s a business decision, and one that will likely bring in hundreds of millions of dollars in new revenue.”
"We understand this is a significant change for our customers, but it's necessary to ensure the long-term success of our airline," Southwest Airlines CEO Bob Jordan said.
The announcement has sparked mixed reactions from passengers, with some expressing disappointment over the loss of a beloved perk, while others acknowledge the financial pressures faced by the airline. Industry analysts predict that this move could have a substantial impact on Southwest's brand image and customer loyalty.
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