Southwest Airlines to End Free Checked Bags, Introduce Basic Fares, Assigned Seating in Major Policy Shift
Southwest Airlines is bringing a historic era to a close as it prepares to end its signature policy of offering two free checked bags to all passengers, Fox News reports.
Starting Wednesday, most travelers will be required to pay $35 for their first checked bag and $45 for the second, marking a significant departure from the budget-friendly approach that has long defined the airline.
The changes, first announced in March, are part of a broader overhaul aimed at attracting new customers and improving profitability amid ongoing financial pressures.
In addition to the new baggage fees, Southwest is also rolling out a new basic fare — the airline’s lowest-priced, but least flexible, ticket option. This fare is designed to appeal to ultra-price-conscious travelers but will come with more restrictions compared to other fare classes.
Some passengers will still be eligible for free checked luggage. Rapid Rewards A-List Preferred members and travelers flying on Business Select or Choice Extra fares will continue to receive two free checked bags for themselves and up to eight companions on the same reservation. A-List Members and Rapid Rewards Credit Cardholders will receive one free checked bag.
“These changes are designed to meet current and future customer needs while also allowing us to grow and compete in new market segments,” said CEO Bob Jordan. “We’re focused on strengthening our business model to ensure long-term success.”
Southwest is also phasing out its long-standing open seating policy. For over five decades, the airline has allowed passengers to choose their seats upon boarding — a rarity in the airline industry. However, beginning in the second half of 2025, Southwest will begin offering assigned seating, including premium seat options at higher fares.
The new seating model is expected to generate more revenue by offering a variety of seat types: Standard, Preferred, and Extra Legroom, the latter two of which will come at an additional cost. Flights with assigned seating are expected to begin operating in 2026.
Later this year, Southwest will also introduce a new fare class structure. In the third quarter of 2025, the airline will retire its existing names like “Business Select,” “Anytime,” and “Wanna Get Away Plus.” The new fare categories will be:
- Choice Extra (formerly Business Select)
- Choice Preferred (formerly Anytime)
- Choice (formerly Wanna Get Away Plus)
Each fare will come with varying levels of flexibility and access to seating upgrades, aimed at offering more personalized pricing options.
The airline’s transformation comes amid rising industry costs and continuing delays in aircraft deliveries from Boeing, which have added strain to operations. In response, Southwest has already begun reducing its presence at select airports as part of a broader effort to cut costs and reallocate resources.
Shares of Southwest Airlines (LUV) traded down 0.83% at $30.95 in Monday’s session.
