Southwest Airlines Set To End ‘Bags Fly Free’ Policy; Fees Starting From $35

Southwest Airlines (LUV) will charge customers for checked bags starting Wednesday, ending a 54-year-old policy.

The Wall Street Journal reported, citing a message to the airline’s employees, that the company would charge $35 for one checked bag and $45 for a second. However, customers who hold the airline’s credit card or have elite status will still get to carry checked bags for free.

The policy change comes as U.S. airlines collected $7.3 billion in fees for checked baggage in 2024.

Southwest was the last U.S. airline to revoke free checked baggage perks. Despite pressure on its finances, the company maintained its passenger-friendly image with popular policies such as open seating and the slogan “bags fly free.” It had already decided to scrap open seating.

However, a slump in earnings following the COVID-19 pandemic and subsequent operational failures has pushed it to take several actions to rein in costs. This year, it announced mass layoffs for the first time.

Southwest’s baggage fees are in line with those of its competitors. The Journal reported that passengers in the airline's top loyalty tier can still check in two bags without cost, while passengers holding the airline's credit card or the next level of status will get to carry one complimentary checked bag.

However, those who have purchased or will buy tickets before the May 28 deadline can still check in two bags free of charge.

The report said that the airline’s basic-economy tickets are also going on sale for the first time, replacing Wanna Get Away as the airline’s cheapest option.

Retail sentiment on Stocktwits was in ‘bearish’ (36/100) territory, while retail chatter was ‘normal.’

One retail investor said the company was taking the right business moves, including a pivot to international flights.

Southwest stock has fallen nearly 8% this year.

Also See: Chevron Gets U.S. Nod to Maintain Oil Assets in Venezuela: Retail’s Split

For updates and corrections, email newsroom[at]stocktwits[dot]com.