Southwest Airlines ends longtime free luggage policy

Southwest Airlines ends free checked bags: May 27, 2025, is the final day to book flights without checked-bag fees, marking the end of its decades-old “two bags fly free” policy. From bookings made May 28 onward, standard passengers will pay $35 for a first checked bag and $45 for a second, aligning Southwest with other major carriers. Only Business Select fare customers and Rapid Rewards A-List Preferred members keep two free checked bags, while A-List members and Southwest credit-card holders receive one. At the same time, Southwest is launching a new Basic fare for its lowest-priced tickets, replacing its open-boarding system with fully assigned seating in early 2026 and requiring portable chargers to stay in plain sight during use. The airline projected in September 2024 that bag fees could generate about $1.5 billion in annual revenue but warned of a potential $1.8 billion loss in business from customers drawn by its free-bag policy. Under pressure from activist investor Elliott Management—which gained board seats—the carrier also cut 1,750 corporate jobs (15 percent of its workforce) as part of a broader profitability push. Investors responded positively, sending Southwest’s stock up roughly 3 percent when the policy took effect. Looking ahead, the airline plans to introduce paid extra-legroom options and overnight red-eye service, signaling a major shift from its historic low-cost, unbundled model.