Southwest Airlines is officially phasing out one of its most well-known and long-standing perks—two free checked bags for all passengers, NBC News reports.
As of Wednesday, only certain travelers will continue to receive complimentary baggage as the airline shifts its policy, marking a significant departure from a practice that has defined its brand for decades.
The change, originally announced in March, means that travelers who do not meet specific qualifications will now face baggage fees. These qualifications include holding elite status in the airline’s Rapid Rewards loyalty program, purchasing a Business Select fare, or owning a co-branded Southwest credit card. Those meeting these conditions will continue to receive one or two free checked bags depending on their tier.
For other passengers, standard checked baggage fees will now apply, aligning Southwest with competitors such as American Airlines and United, which typically charge between $35 and $40 per bag.
The airline, which has long used its free baggage policy as a cornerstone of its advertising and customer appeal, acknowledged last year that introducing bag fees could bring in an estimated $1.5 billion in additional annual revenue. However, executives also anticipated the move could cost Southwest about $1.8 billion in lost business from passengers who had favored the carrier for its generous baggage policy.
In addition to the new baggage policy, Southwest is also preparing to roll out several other changes. A new basic fare option is expected to debut alongside the fee structure. On the safety front, beginning Wednesday, passengers will be required to keep portable chargers visible while in use onboard, following increased incidents involving lithium-ion battery fires.
Further ahead, the airline plans to transition from its longstanding open seating model to assigned seating beginning next year. Southwest also intends to introduce red-eye flights and premium seating options with more legroom, as it looks to modernize and diversify its offerings.
These changes come amid growing financial pressure and internal restructuring. The Dallas-based airline announced in February that it would lay off 1,750 employees, representing 15% of its corporate workforce—its first mass layoff in more than 50 years. Additionally, the company reached an agreement with activist investor Elliott Investment Management last October, granting the hedge fund seats on its board in an effort to stave off a proxy battle.
