Southwest Drops ‘Bags Fly Free’ What It Means for Travelers

Dear Reader,

Big changes are coming to travelers of Southwest Airlines, after decades of allowing passengers to check two bags for free, the airline is officially ending its signature perk. Starting May 28, travelers will have to pay for their first and second checked bags, unless they're  “A List loyalty members”, Southwest credit card holders, or flying on a business fare.

For years, Southwest stood out from other airlines by refusing to charge for baggage. The airline even built its brand around the “Bags Fly Free” slogan. But now, under pressure to boost profits, Southwest is shifting gears and falling in line with the rest of the industry.

Why Is Southwest Making This Change?

CEO Bob Jordan explained that while the free baggage policy attracted customers, data now shows most travelers prioritize price over perks. The airline’s recent decision to sell tickets through third party sites like Google Flights revealed that passengers often choose the cheapest fare regardless of baggage fees.

Additionally, new leadership from other airlines brought a fresh perspective, pushing Southwest to explore new revenue streams. Especially since baggage fees have become a goldmine for major carriers. In 2023 alone, American Airlines made $1.4 billion from baggage fees, while United and Delta raked in over $1 billion each. Southwest, by comparison, collected just $73 million.

What This Means for Travelers

• Fares May Stay Low – Charging for checked bags helps airlines keep base ticket prices competitive, which could be Southwest’s goal.

• More Overhead Bin Chaos – With checked bags now costing extra, more passengers may try to squeeze everything into a carry on, leading to more crowded bins.

• Loyalty Perks Matter More – A-List members and Southwest credit card holders will keep their free baggage benefits, making rewards programs even more valuable.

• Other Airlines Smell Opportunity – Competitors like Delta and United see this as a chance to win over Southwest’s budget conscious passengers.

Will Southwest Lose Customers?

Some travelers who relied on Southwest’s baggage policy may switch to other airlines. However, analysts believe that as long as Southwest keeps its fares competitive, most customers will stay. The airline is also introducing other changes, such as assigned seating, premium seats, and even red eye flights aimed at attracting a wider customer base.

 Following the announcement,Southwest’s stock surged over 6% signaling that investors support the change. But will passengers feel the same way?

We’ll let you know

Stay tuned,
Grand Crypto Insider