Southwest Airlines is making significant changes to its policies in an effort to increase profitability. The airline has announced that it will start charging for checked bags at the end of May, ending its long-standing policy of allowing passengers to check two bags for free. This perk will now only be available to elite members, starting May 28. Additionally, Southwest is introducing a basic economy fare that does not include certain perks that customers have enjoyed in the past, such as the ability to choose a seat or request extra legroom. The airline is also reducing the number of Rapid Rewards points that customers can earn on certain fares.
The decision to charge for checked bags is part of a strategy aimed at increasing revenue and returning to higher levels of profitability. Southwest’s profits dropped by 46% in early 2024, despite record revenue by the end of the year. CEO Bob Jordan emphasized the opportunity to meet customer needs, attract new customer segments, and satisfy shareholder expectations. The move to charge for checked bags aligns Southwest with other major airlines that offer cheaper tickets to customers who are willing to forgo certain amenities and perks. By following this model, Southwest hopes to generate additional revenue through bag fees.
For travelers looking to avoid checked bag fees, there are still options available. Southwest Rapid Rewards A-List Preferred Members and customers who book Business Select fares can continue checking two bags for free, while A-List Members and select customers will receive one free checked bag. Rapid Rewards Credit Card members will also receive a statement credit for one checked bag. Additionally, other airline credit cards may offer perks like free checked bags, such as the Delta SkyMiles Gold American Express Card. If all else fails, travelers can consider packing lighter and utilizing compression cubes, vacuum bags, and expandable compartments to maximize space in a carry-on.
While the introduction of checked bag fees may be met with frustration by some travelers, Southwest’s new policies are aimed at improving the airline’s financial performance and returning to profitability. By following the lead of other major carriers and offering different fare options with varying levels of perks, Southwest is hoping to attract new customer segments and increase its overall revenue. For travelers who are concerned about the added costs of checked bags, there are still ways to avoid fees, such as taking advantage of free checked bag benefits through loyalty programs or credit card perks. By being strategic and efficient with packing, travelers can minimize the impact of these policy changes on their overall travel experience.
