Southwest Airlines to End Free Checked Bags Starting May 28

New York, NY — Southwest Airlines announced Tuesday that it will begin charging for the first and second checked bags starting May 28, marking a significant change in its customer policy. This move comes months after the airline discontinued its open seating policy.

Only members of the A-List loyalty program and business fare travelers will be exempt from these new fees. “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,” said Bob Jordan, CEO of Southwest, in a press release.

The decision to implement bag fees ends a decades-long tradition for the airline, which has offered free checked baggage since its inception in the 1960s. The policy change is expected to enhance profitability, as Southwest has consistently reported higher numbers of checked bags compared to its competitors.

Jordan previously stated during an analyst call last year that there were no immediate plans to charge for checked baggage, emphasizing that this feature attracted many customers. He noted that “after fare and schedule, bags fly free is cited as the number one issue in terms of why customers choose Southwest. So, it’s not something under consideration right now.” In addition to potential revenue from bag fees, the airline must weigh the operational costs associated with slowing down boarding processes due to checked luggage.

While specifics on the pricing of the new fees have yet to be disclosed, the move is anticipated to increase Southwest’s bottom line, given its high volume of checked bags compared to other airlines. Shares of Southwest rose nearly 6% in premarket trading following the announcement.

The airline has recently undergone other transformations, including changes to its seating arrangements and the implementation of premium seats, aligning it more closely with traditional carriers. Additionally, Southwest has announced it will soon offer “basic economy” fares with stringent restrictions, a shift aimed at capturing a broader customer base.

Last month, the airline executed a historic reduction in its corporate workforce, laying off 1,750 employees—15% of its staff. This move is projected to save the company $210 million this year and $300 million in 2026.

The changes come after Elliott Investment Management acquired a $1.9 billion stake in the airline, prompting calls for operational overhauls and leadership adjustments to enhance profitability. It’s worth noting that customer feedback has played a role in these shifts, as passengers have often cited the open seating policy as a significant reason for their choice to fly Southwest.