Southwest Airlines’ Free Bags for All No Longer Flies
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Southwest Airlines today announced that it will introduce baggage fees for most fare classes effective May 28, officially ending its long-standing “Bags Fly Free” policy that set it apart from competitors. This marks one of the most significant shifts in the airline’s history, raising questions about how Southwest will retain its loyal passengers as the airline acquiesces to a range of Wall Street demands stemming from Elliott Capital in an increasingly fee-driven industry.
Southwest has long resisted the widespread industry practice of charging for checked bags, instead using its free baggage allowance as a key differentiator. However, as part of a broader revenue strategy, the airline announced that Business Select and Anytime fares will continue to include two free checked bags, while Wanna Get Away and Wanna Get Away Plus fares will soon be subject to new baggage fees.
“We are evolving our product offerings while continuing to deliver the value and flexibility that customers expect from Southwest,” Southwest Airlines CEO Bob Jordan said in today’s announcement. “Our goal is to remain competitive in a changing industry while preserving what makes Southwest special.”
Passenger Backlash Begins
The end of Southwest’s universal free bag policy is already sparking strong reactions among travelers. “There is less reason than ever to fly Southwest Airlines. In the last six months they’ve eliminated free luggage, reduced the amount you earn when you fly (unless you pay for points), and will begin charging for seats. They’re just another airline without any premium seating option,” longtime Southwest passenger Daniel Mayer wrote on X (formerly Twitter).
Other frequent travelers now see less of a reason to remain loyal to the airline. “If I have to start paying for bags, I might as well book with Delta or United,” another passenger commented. “At least they have seatback screens and assigned seats.”
End of a Defining Passenger Perk
For decades, Southwest’s baggage policy wasn’t just a perk—it was a core part of its brand identity. At a time when major airlines began introducing checked bag fees in the early 2000s, Southwest chose to take a stand against the trend, reinforcing its commitment to transparent pricing.
This change is especially significant for former AirTran Airways passengers, a group Southwest worked to retain since acquiring the airline in 2010. Years before becoming APEX Group CEO, Dr. Joe Leader was AirTran Airways’ most frequent flyer, advocating as a customer during the Southwest Airlines acquisition for the airline to keep AirTran’s assigned seating and business class while recognizing that Southwest’s free bag policy was a compelling reason for AirTran’s customers to transition to the bigger brand.
“Southwest Airlines’ ‘Bags Fly Free’ policy was one of the most passenger-friendly constants in the airline industry. For years, it stood firm against baggage fees while competitors leaned into them for billions in revenue,” Dr. Leader stated today. “As Southwest moves toward industry norms, it must be careful not to lose the trust of passengers who valued its incredible simplicity and transparency.”
Southwest to Begin Selling Assigned Seats
For the first time in its history, Southwest Airlines confirmed that it will begin selling assigned seats this year, with a full rollout in 2026. The airline’s traditional open-seating model, which has defined its boarding process for over 50 years, will soon be phased out for certain fare classes.
“We are designing a seating product that gives passengers more choice while maintaining the operational efficiency that Southwest is known for,” Southwest Airlines Chief Transformation Officer Ryan Green stated. “Customers have told us they want the option to choose their seats in advance, and we’re responding to that demand.”
The shift toward assigned seating aligns Southwest more closely with its competitors, as surveys have shown that many business travelers and families prefer the certainty of knowing where they’ll sit before boarding. However, it also raises concerns that Southwest may be losing yet another element of its unique brand identity.
“Once Southwest eliminates open seating, it’s just another airline,” travel analyst Gary Leff wrote in View from the Wing. “Without free bags and without its signature boarding process, what’s left to differentiate Southwest from its competitors?”
Gutting Frequent Flyer Earnings
Alongside baggage fees, Southwest this month also significantly reduced frequent flyer earnings for most passengers. The airline quietly announced that only Business Select and Anytime fares will continue to earn full Rapid Rewards points, while Wanna Get Away and Wanna Get Away Plus fares will now receive significantly fewer points per dollar spent. This change further reduces the value proposition for many Southwest loyalists, as travelers who book lower-cost fares will see their points accumulate at a much slower rate.
“Southwest has built one of the most accessible loyalty programs in the industry, but these changes make it harder for most travelers to earn rewards,” said Henry Harteveldt, an airline industry analyst at Atmosphere Research Group, in an interview with The Points Guy. “Between baggage fees and lower rewards, Southwest risks losing the goodwill that set it apart.”
Competitive Pressures and Financial Realities
Southwest’s decision comes as the airline faces increasing cost pressures, including higher fuel prices and labor expenses. For years, it has resisted tapping into baggage fee revenue, even as its competitors made billions from these charges.
According to the U.S. Department of Transportation, U.S. airlines generated over $6 billion in baggage fees in 2023. Southwest estimated that introducing baggage fees could generate $1.5 billion in annual revenue but risk $1.8 billion in lost market share, according to the airline’s Q4 2024 earnings call. Today’s announcement suggests the airline is now willing to test that trade-off.
Some industry analysts view the move as necessary, even if unpopular. “Southwest has held out against baggage fees for years, but cost pressures made this change inevitable,” said Helane Becker of TD Cowen in a research note. “The key will be whether Southwest can introduce these fees while maintaining customer trust.”
What’s Next for Southwest Airlines?
With baggage fees now in play, frequent flyer earnings reduced, and assigned seating on the way, Southwest faces a crucial test: Can it evolve without losing the trust of its most loyal passengers?
“The most dangerous move an airline can make is removing what passengers love most about its service,” said Brian Sumers, an aviation industry expert, in The Airline Observer. “Once you start charging for something that was once free, it’s difficult to convince customers that you still offer a better experience.”