Southwest Airlines, which has long allowed passengers to check up to two bags for free, is making a big change. Starting with flights booked on May 28, the airline will start charging for checked bags for most passengers.
Southwest Airlines Baggage Fees Update
This is a big shift for the Dallas-based airline, which had used its baggage policy as a key differentiator from the competition. Only select passengers, like Rapid Rewards A-List Preferred members, Business Select fare holders, and those with a Southwest branded credit card, will still get free bags. Everyone else will have to pay.
Why is Southwest Charging for Bags?
Southwest is under pressure to increase revenue and profits after struggling financially. The airline estimates it will make about $1.5 billion a year in bag fees. But it also estimates it will lose about $1.8 billion in business from passengers who previously chose Southwest because of its free bag policy.
Changes to Southwest’s Baggage Policy and Services
Along with the new bag fees, Southwest will offer a basic fare for its cheapest tickets. This is part of bigger changes, including the switch to assigned seating, a departure from its open seating model.
Customers and Competition
The new Southwest baggage policy has gotten mixed reactions from travelers. Many loyal customers loved the free bag policy and some may now look elsewhere. Competitors like Delta and United see this as an opportunity to scoop up Southwest passengers.
Final Thoughts
Southwest’s stock went up 9% after the announcement, but long term it’s unclear. Passengers will have to weigh the extra bag fees against the airline’s other offers when booking flights. With big changes to its business model, Southwest is trying to stay relevant in a changing airline industry.
