Key Takeaways
• Southwest Airlines will end its “bags fly free” policy on May 28, 2025, introducing baggage fees for most passengers.
• Free checked bags remain only for Rapid Rewards A-List Preferred, Business Select passengers, and specific loyalty tiers; others will face charges.
• These changes, part of a restructuring plan, may generate $300 million revenue in 2026 but risk alienating loyal customers.
Southwest Airlines’ decision to retire its famed “bags fly free” policy has ignited a wave of discontent among loyal passengers and industry watchers alike. On March 11, 2025, the airline announced that starting May 28, 2025, it would begin charging most passengers for checked bags, ending a feature that has been a hallmark of the company for over a decade. For many travelers, this policy was a leading reason why they chose Southwest for their flights. Now, as the airline pivots to a new revenue model, reactions have been swift and critical.
Southwest Airlines, headquartered in Dallas, Texas 🇺🇸, has long been a customer favorite due to its focus on affordability and convenience. Its “bags fly free” policy has differentiated it in a hyper-competitive airline industry where fees can quickly add up. The change comes as part of a broader restructuring strategy designed to increase profitability and attract a larger customer base. CEO Bob Jordan, in a statement announcing the decision, remarked, “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.”
Despite Jordan’s optimistic framing of the decision, the backlash has been considerable. Critics argue that eliminating free checked bags removes a key element of what has made Southwest stand out in a crowded airline marketplace. For years, the airline has built its reputation around flexibility, transparent pricing, and fewer fees. Industry analyst Henry Harteveldt didn’t mince his words, stating, “This is how you destroy a brand. This is how you destroy customer loyalty. And this, I think, is going to send Southwest into a financial tailspin.” Harteveldt warned that Southwest risks being lumped in with every other carrier, losing its distinct identity.
Under the new policy, only the most elite travelers will continue to benefit from free checked bags. Top-tier Rapid Rewards A-List Preferred members and passengers booking premium Business Select fares will still be allowed two free checked bags. Meanwhile, A-List members, Southwest-branded credit card holders, and some other select categories of travelers will qualify for one free checked bag. All other passengers will face charges for checked luggage on flights booked after May 28, 2025. While Southwest has stated that checked bag fees will be competitive with other carriers, it has not yet specified dollar amounts—a lack of transparency that has fueled further customer dissatisfaction.
Social media has been flooded with negative reactions, as long-time customers share their disappointment in the policy reversal. Many passengers recall hearing assurances from Bob Jordan just months earlier that “bags fly free” would remain a core part of Southwest Airlines’ identity. In September 2024, Jordan told CBS News, “Bags will still fly free. It’s the third thing customers look for after fare and schedule: Bags fly free, on us.” This apparent reversal has left some passengers feeling betrayed. Critics argue that the change signals not only a financial shift but a deeper transformation in Southwest’s values and priorities.
The end of the “bags fly free” policy is just one component of a larger overhaul within the airline. Southwest is also rolling out a new Basic fare option, highly discounted but with added restrictions similar to competitors’ basic economy fares. Points earned in the carrier’s Rapid Rewards loyalty program will now heavily favor higher-paying Business Select fares, while travelers on discounted fares like “Wanna Get Away” will see reduced point earnings. Additionally, Southwest plans to implement dynamic pricing for points redemption, meaning the value of points will fluctuate depending on demand for any given flight.
Perhaps the most controversial among these changes—beyond the baggage fees—are Southwest’s plans to eliminate its open seating policy. The airline will transition to assigned seating, a change that has raised eyebrows among frequent flyers. Assigned seating will come with the option to purchase extra legroom seats for an additional fee, a model many travelers associate with legacy airlines rather than low-cost carriers. For budget-conscious passengers who appreciated Southwest’s straightforward boarding procedures, this shift represents yet another departure from the company’s roots.
Southwest has also announced layoffs impacting 15% of its corporate workforce—about 1,750 employees—earlier in February 2025, marking the first round of mass layoffs in its history. These layoffs and the various policy shifts come as part of an effort to placate activist investor Elliott Investment Management. The investor, which purchased a $1.9 billion stake in Southwest in 2024, has been pressuring the airline to improve profitability and overhaul its operations. The changes culminated in September 2024 with a restructuring agreement aimed at addressing these demands. Elliott’s influence has undoubtedly played a role in reshaping Southwest’s strategic direction.
The broader airline industry is observing Southwest’s shift with a mix of surprise and strategic planning. United Airlines CEO Scott Kirby described the move as “the slaying of a sacred cow,” underscoring how closely the “bags fly free” policy has been identified with Southwest’s brand identity. Delta Airlines President Glen Hauenstein, on the other hand, saw it as an opportunity, remarking that some of Southwest’s disappointed customers could now be “up for grabs.” Whether Southwest’s competitors can capitalize on this discontent remains to be seen, but the sentiment among consumers is clear: loyalty to Southwest is being tested in an unprecedented way.
For passengers, the disappearance of free checked bags is more than just an additional fee—it represents the erosion of what they saw as Southwest’s commitment to simplifying air travel. Consumer advocates worry this policy shift could prompt many passengers to avoid checking bags altogether, leading to more overstuffed carry-ons and clogging the boarding process. Furthermore, unlike some carriers that have invested in larger overhead bins to accommodate an influx of carry-ons, Southwest has no such plans, potentially worsening the issue.
Economically, the change may not yield the results Southwest anticipates. The airline estimates that baggage fees will generate $210 million in additional revenue in 2025 and $300 million in 2026. However, these projections do not account for the potential losses caused by alienating a loyal customer base. Analysts warn that once customers defect to other airlines, they may not return, especially if Southwest no longer offers the perks that made it unique.
This shift also underscores a larger trend in the airline industry where distinctions between low-cost carriers and legacy airlines are becoming increasingly blurred. By adopting policies like assigned seating and baggage fees, Southwest risks losing its position as a disruptor in the market. This convergence is likely to reduce consumer choice and may ultimately hurt budget-conscious travelers, who will have fewer truly low-cost options available.
CEO Bob Jordan and his team now face the enormous task of managing the growing discontent among their customers while trying to implement these changes. The airline’s ability to handle this transition strategically will be critical in determining whether the policy shift strengthens its financial performance or irreparably damages its reputation. As the May 28 implementation date nears, Southwest’s every move will be closely scrutinized, not just by passengers but also by industry competitors and stakeholders.
In conclusion, the announcement marks a turning point for Southwest Airlines. Ending the “bags fly free” policy signals a departure from the airline’s core identity and has stirred significant backlash from customers and analysts. With additional changes such as Basic fares, reduced earning potential in Rapid Rewards, and assigned seating, Southwest is clearly repositioning itself in the airline market. However, as noted by VisaVerge.com, this realignment comes with risks of alienating its customer base and losing the trust it worked so hard to build over decades. Whether Southwest’s gamble will pay off in the form of improved profitability remains uncertain, but its decision has undoubtedly sent shockwaves through the industry. For now, travelers and competitors are watching closely to see what the future holds for an airline once celebrated for its customer-first mindset.
For further understanding of the airline’s changes and fees for checked baggage, travelers can visit Southwest Airlines’ official page here.
Learn Today
Sacred cow → A deeply revered tradition or principle considered untouchable, often resistant to change or criticism.
Hyper-competitive → Describes an environment with intense rivalry where businesses constantly compete for market share and customer loyalty.
Dynamic pricing → Flexible pricing strategy where costs fluctuate based on real-time demand, competition, or other external factors.
Assigned seating → A seating system where passengers are pre-assigned specific seats before boarding, unlike open or first-come seating.
Activist investor → A shareholder using significant ownership stakes to influence a company’s operations, strategies, or financial policies for perceived improvement.
This Article in a Nutshell
Southwest Airlines retiring its iconic “bags fly free” policy has sparked backlash, challenging its customer-first reputation. Starting May 28, 2025, most passengers will face baggage fees, aligning with competitors. Critics warn of eroding loyalty and brand identity, while competitors eye opportunities. This bold shift risks alienating customers—can Southwest weather the storm?
— By VisaVerge.com
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