The Other Shoe Has Dropped: Bags No Longer Free on Southwest

For the last few weeks, I've had a blog post drafted titled "When will the other shoe drop?: Predicting when Southwest will start charging for bags". Last week, I planned to put the finishing touches on it and ship it, but other items took priority. Heck, I even wanted to get it out yesterday. Well, it's moot now. The other shoe has officially dropped, with today's announcement from Southwest Airlines indicating that the LUV carrier will begin charging for checked baggage this upcoming summer.

Sigh, let's jump in it. 

Southwest Changed Baggage Policy

Effective May 28, 2025, all Southwest Airlines passengers will no longer be entitled to free checked bags. Instead, some passengers, namely A-List Preferred Members and Business Select ticketed travelers, A-List Members, and Rapid Rewards Credit Card holders, will continue to receive at least one free checked bag. A-List Preferred elites and Business Select passengers will receive two free checked bags, while A-List Members and Rapid Rewards Credit Card holders will receive one complimentary bag. 

This is a major change in Southwest's core policy and, frankly, brand identity. I know I'm not the only one who remembers this commercial. 

Though I've acknowledged my days of Southwest frequent flier are long of the past, I can't help but say precisely what you're thinking:

'Bags Fly Free' was synonymous with Southwest Airlines. It was part of the airline's jovial shtick and a core differentiator in an ever-competing airline industry. Southwest Airlines has always marched to the beat of its own drum, the airline version of that quirky member of the friend group that always has something zany going on but still manages to be successful and, above all else, is always up for a good time. Whether it was the open-seating policy, a system-wide generous companion pass, or four different fare tiers, even the most basic of which would still get you free bags and a shooter's chance at a good seat - Southwest did things differently. For a long time, the airline managed to succeed and grow impressively. That said, the departure from this long-standing policy of 'two free checked bags' feels like the nail in the coffin for the entire airline's persona.

How Did We Get Here?

It depends on who you ask, but my two cents - the pandemic and private equity. Travel Armageddon Winter 2022 was my official off-ramp of Southwest. I wasn't the only traveler who similarly swore off the airline. For years before that operational meltdown, I was a habitual Southwest frequent flier, a long-time holder of the Companion Pass. Since then, I've flown Southwest maybe twice. Southwest never recovered from that incident and, as a result, became a compelling target for reason number two. Activist investor Elliott Management has played the lead role in the dismantling of Southwest Airlines. The classic playbook for private equity is to round up a distressed asset, strip away the parts (and sell them), and slap some lipstick on the remaining pig before taking it down to the county fair to sell. Who knows if that's the exact endgame for Southwest Airlines, but here's a list of changes we've seen, all aimed at increasing profitability, since Elliott Management made its move:

• Significant shakeup to Southwest's leadership team (new CFO) and board of directors
• Major layoffs affecting a substantial portion of the airline's desk and office staff
• Curtailing of the open-seating policy. Later this year, you'll need to pay to select a seat.
• An offensively large slash to Rapid Rewards earnings on paid fares
• Southwest introduced redeye flights
• Consolidation of long-stand flight crews and operational centers
• Elimination of the two complimentary checked bags for passengers and a reintroduction of expiration dates on award certificates

I'm sure I've missed others, but that's a lot of change over a six-month period, much of which affects the heart of the brand. 

What's Next? What's Left? 

If Southwest is to operate more like a traditional carrier - where passengers pay for things like seat selection, checked bags, and more - can it adequately articulate a difference between its product and traditional budget carriers like Spirit and Frontier? Say what you want about Spirit, but at least you can pay for the 'Big Front Seat' if you value the extra space. And Southwest? We've seen the same '3 and 3' format throughout the airline's 737 and 737 MAX 7 fleet. There's been rumors of premium seating coming to market, but short of Southwest retrofitting its planes to offer a true first class, I'm not sure there's too much to get excited about. And then there's dining? Will we see in-flight catering for long-haul service (transcontinental, flights to Hawaii, and its Caribbean/Latam destination)? How would that work? I shudder to think…

Does that even matter? Or is this all part of the long-term private equity play. Start of with customers paying for seats and bags, while purposely keeping the 'core fare' price low, so customers think, initially, there isn't too much difference to the all-in bottom line price. Then, quarterly the fares increase but the offering stays the same to the point you're paying 1.X to flying Southwest as to say American or Delta.

These unknowns trace back to one overarching question - What is Southwest Airlines? Is there even a brand? How will I know what to expect while flying?

And then there's what's left. In short, the Companion Pass. One of the single best deals in all of travel, the Companion Pass - in its current form - must also be on the chopping block. This isn't to say that it will completely go away. No. Instead, I can see a more muted, tapered-down offering, where a 'companion' can fly X number of times per year or per qualified companion pass. Perhaps they'll keep it unlimited but charge a convenience fee for each use, a small flat fee ($7.87, anyone?), or a small percentage of the cash fare. Or the powers that be will surprise us peons and keep something sacred, throwing us a bone with some meat still on it. One can only hope. 

Conclusion

With its latest announcement that checked bags will no longer be free for all travelers, Southwest Airlines might officially be 'cooked.' In a move that felt imminent for months, today's actions feel like someone tore off the band-aid on a wound that hasn't yet healed. Time will tell what Southwest Airlines looks like a year from now, but if you had plans to sip on something today, don't forget to pour one out for a true O.G., "The People's Airline," Southwest. (But please, make sure it's not too precious a wine!)