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Home Stocks And Finance

Starting Wednesday, Southwest Airlines to implement $35 fee for checked bags

May 27, 2025
in Stocks And Finance
Reading Time: 4 mins read
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Passengers check in for Southwest Airlines flights at Chicago Midway International Airport on Feb. 18, 2025 in Chicago, Illinois.

Scott Olson | Getty Images

Set your alarm. Southwest Airlines customers have only one day to go before the company starts charging to check bags for the first time in more than half a century.

Starting Wednesday, Southwest will end its blanket “two bags fly free” policy and charge $35 for a first checked bag and $45 to check a second, with some exceptions.

It was a perk that was sacrosanct among customers and the airlines’ longtime executives alike, setting the airline apart from competitors. But baggage fees brought in nearly $7.3 billion for U.S. airlines last year, according to federal data, and Southwest executives who have long vowed to hold onto the policy have been under pressure to raise revenue.

Along with starting to charge for checked bags, Southwest has announced major changes to its business model over the past year, like getting rid of open seating. The carrier is also debuting basic economy tickets like those sold by Delta Air Lines, American Airlines and United Airlines on Wednesday.

Here’s what travelers should know about the end of free bags on Southwest:

What is changing?

Southwest will no longer offer two free checked bags with many tickets purchased on or after Wednesday. For tickets bought before then, a Southwest spokesman said the carrier will honor the terms of those fares, like the two free checked bags.

The fees will apply to its no-frills Basic, its Wanna Get Away Plus and its Anytime fares.

Southwest announced the policy in March after months of pressure from activist Elliott Investment Management, which took a stake in the airline last year and won five board seats, pushing for major changes at the company like its free checked bags, changeable tickets and open seating.

Are there exemptions?

Yes. Travelers with top-tier status in Southwest’s Rapid Rewards loyalty program will get two free checked bags, as will customers in the highest-level Business Select fares.

Customers with a Southwest Airlines co-branded credit card and their travel companions booked together with the same card won’t get charged for their first standard checked bag. Southwest credit cards have annual fees ranging from $69 a year to $199, according to the airline’s website.

A-List frequent flyer members, the second-highest tier in the loyalty program, will also get their first bag checked free of charge.

Read more CNBC airline news

New fare type: Basic

Southwest on Wednesday will also start selling basic economy tickets.

With the new Basic fare, customers won’t be able to make changes to their tickets, they’ll be among the last customers to board and their fare credits will expire in six months, compared with 12 months for other ticket classes.

In another change, the airline is ending its Wanna Get Away fare, which was the lowest-tier ticket before the changes.

What about assigned seats?

Southwest has been known for its open seating model for decades. Loyalists often obsessively check in a day before their flight in hopes of scoring a favorable boarding slot.

But later this year, Southwest says it will start selling tickets for flights in 2026 that will have seat assignments. It is also outfitting its planes with extra legroom seats, like many of its competitors, that fetch higher prices.

Can Southwest handle it?

Southwest executives have told staff that they expect passengers to carry on more luggage (those policies for free carry-ons aren’t changing) and have said the airline is installing larger overhead bins on its Boeing fleet, which should help with an influx of carry-on bags.

Executives have also said staff will get mobile bag tag printers at gates and airport lobbies to assist customers.

Are people mad?

Southwest can hardly post on social media — even about babies and puppies on board — without getting angry comments about the changed baggage policy.

But CEO Bob Jordan told CNBC last month that the policy change announcement the company made on March 11 hasn’t deterred customers.

“We have seen no book-down on that day or after that day,” he said on “Squawk on the Street” on April 24.

Don’t miss these insights from CNBC PRO



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Tags: Aerospace and defense industryAirlinesAmerican Airlines Group IncBagsBoeing CoBreaking News: BusinessBreaking News: EconomyBusinessbusiness newscheckedDelta Air Lines IncEconomyfeeimplementLifeSouthwestSouthwest Airlines CostartingTransportationTravelUnited Airlines Holdings IncWednesday
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