Southwest Airlines has launched its biggest changes in decades, introducing assigned seating and ending its long-standing “bags fly free” policy. These updates, announced in July and May 2025, aim to keep the airline competitive, but have sparked strong reactions from loyal customers and industry watchers.

On July 29, 2025, Southwest Airlines began letting customers choose assigned seats for flights departing on or after January 27, 2026. This marks the end of the airline’s 53-year tradition of open seating, where passengers picked any available seat once on board. The new assigned seating system comes with four fare bundles: Basic, Choice, Choice Preferred, and Choice Extra. Each bundle offers different seat selection options and extra perks. The boarding process will also change, moving from the well-known A-B-C groups to a new eight-group system. This new system gives priority to premium fare holders, loyalty program members, and Southwest credit card holders.

Families and groups traveling together will be placed in the same boarding group, and the airline promises to seat children under 13 next to at least one adult from their group. This aims to reduce stress for families and make the boarding process smoother.

In May 2025, Southwest Airlines also ended its “bags fly free” policy, which had allowed all passengers to check two bags at no extra cost. Now, passengers must pay $35 for the first checked bag and $45 for the second. However, loyalty program members and Southwest credit card holders still get one free checked bag. This move brings Southwest in line with most other major U.S. airlines, which have charged for checked bags for years.

CEO Bob Jordan has spoken out about the backlash, calling the changes “exciting” and necessary for the airline’s future. He points to customer research showing that more than 80% of current passengers and 86% of potential customers prefer assigned seating. Jordan says, “We’re answering what customers want—more choice, more options, and more premium experiences.” He also denies that activist investor Elliott Investment Management directly forced these changes, though he admits that shareholder pressure led to a board shakeup in 2024.

The financial impact of these changes is expected to be huge. Southwest Airlines projects that the new assigned seating, baggage fees, fare bundles, and loyalty program updates will bring in an extra $4.3 billion in earnings before interest and taxes (EBIT) for 2026. Assigned seating alone is expected to add $1.5 billion, while bag fees and loyalty changes should bring in another $800 million. Wall Street has responded well, with Southwest’s stock price rising over 20% in the past month and analysts upgrading their outlook for the company.

Southwest Airlines is also making other big changes. The airline is updating its cabins to add extra legroom and more comfortable seats. It’s expanding redeye flights and adjusting fare structures to offer more choices. New international partnerships with Icelandair and China Airlines will help Southwest reach more destinations around the world. The company is also upgrading its fleet with better WiFi, larger overhead bins, and in-seat power outlets.

For passengers, these changes mean a new way of flying with Southwest Airlines. Most fares now let you pick your seat when you book. If you buy a Basic fare, you’ll get your seat assignment at check-in unless you have elite status or a Southwest credit card. Premium fare bundles offer extra legroom and preferred seating. You can see seat maps during booking to help you choose the best spot. If you want to board early, you can buy Priority Boarding 24 hours before your flight.

The new baggage policy means that unless you’re a loyalty member or have a Southwest credit card, you’ll need to pay for checked bags. This is a big shift from the old “bags fly free” promise, which many customers loved. The new eight-group boarding system is designed to make boarding faster and easier, matching the new assigned seating setup.

Not everyone is happy about these changes. Many long-time Southwest Airlines fans valued the open seating and free checked bags, seeing them as part of what made the airline special. However, Southwest’s research shows that most travelers now want assigned seating and more premium options. As reported by VisaVerge.com, industry experts believe these changes are necessary for Southwest to keep up with other airlines and meet new customer expectations.

Investors and analysts have welcomed the updates, saying they are overdue and will help Southwest Airlines stay strong in a tough market. Some employees, however, have faced layoffs for the first time in the airline’s history, as the company looks for ways to cut costs and improve efficiency.

Southwest’s open seating policy was a key part of its brand for over 50 years, helping the airline turn planes around quickly and keep fares low. The “bags fly free” policy also set Southwest apart from other U.S. airlines. But rising costs, more competition, and changing customer preferences after the pandemic have forced the company to rethink its business model. Pressure from investors and changes to the board in 2024 sped up this transformation.

Looking ahead, assigned seating and the new boarding process will start for all flights leaving on or after January 27, 2026. Cabin upgrades and new fare structures are already underway, and more international routes are expected soon. Southwest Airlines says it will keep listening to customer feedback and may adjust its policies if needed.

For the latest details on these changes, passengers can visit the official Southwest Airlines website at southwest.com. The site offers up-to-date information on fare bundles, seat selection, baggage fees, and more. Customers can also reach out to the Southwest Help Center for answers to specific questions about bookings or new policies.

Industry experts say that while some loyal customers may feel left out, the broader market opportunity and financial benefits make these changes the right move for Southwest Airlines. The airline’s focus on assigned seating, new fare bundles, and updated amenities shows its commitment to staying competitive and meeting the needs of today’s travelers.

Passengers planning to fly with Southwest Airlines should review the new fare options, check baggage fees, and consider joining the loyalty program or getting a Southwest credit card to save on checked bags. As the airline continues to roll out these updates, travelers can expect a more modern and flexible flying experience, even if it means saying goodbye to some old favorites like open seating and “bags fly free.”