Southwest Airlines announced today that it is eliminating free checked bags for most of its fare types in the latest iteration of the carrier’s transformation plan. While I’ve seen outrage plastered across many travel blogs, I feel like most of us saw this coming given the other punitive changes at the airline.
Southwest Cuts Free Checked Bags For Most Fare Classes
Southwest’s transformation is coming as the airline is under pressure from activist investor Elliott Investment Management L.P. The firm initially took a $1.9 billion position in the Dallas based carrier, representing roughly 11% of the airlines outstanding shares in June 2024. That made them one of the largest investors in the company.
In the months since, we’ve seen a major overhaul at the airline with a move to operating redeye flights, adding assigned and extra legroom seating, slashing Rapid Rewards loyalty earnings, laying off corporate staff, and now eliminating bags on all but its highest fares.
Unsurprisingly, the company is branding this as a positive development, stating in a press release that the airline is evolving rapidly, implementing new initiatives that support business objectives and create choice for current and future customers of America’s largest domestic carrier. Initiatives announced today will reward the airline’s most loyal customers and give all customers more options for a broader range of travel experiences.
Give the marketing person an A+ for this spin, as this change has essentially dismantled the last pillar of the “old Southwest”. Beginning on flights booked on or after May 28, 2025, Southwest will continue to offer two free checked bags to Rapid Rewards A-List Preferred Members and customers traveling on Business Select fares.
A-List Members and other select customers along with Rapid Rewards credit card holders will be allowed one free checked bag. All other customers customers who do not qualify for these free bag options will be charged for their first and second checked bags, though the airline hasn’t indicated pricing for these yet.
Bob Jordan, President, Chief Executive Officer, & Vice Chairman of the Board of Directors at Southwest Airlines, said this about the changes:
“We have tremendous opportunity to meet current and future Customer needs, attract new Customer segments we don’t compete for today, and return to the levels of profitability that both we and our Shareholders expect. We will do all this while remaining focused on what’s made us strong—our People and the authentic, friendly, and award-winning Customer Service only they can provide.”
What is Southwest’s Value Proposition Now?
This change essentially eliminates any and all differentiators that made Southwest, Southwest. I’m currently writing this from Dallas Love Field, the carrier’s home base, as part of my promotional Companion Pass run and travelers are a mix between mad and unaware.
The airline is no longer the Southwest that was beloved by travelers, even when it had operational meltdowns and an uncompetitive hard product. Southwest had built up so much goodwill that many travelers, especially those with families, were willing to overlook these shortcomings. Now, the airline is American with a worse route network.
While activist investor Elliott Investment Management L.P. is likely seeing some short term profits from these changes, the airline’s reputation has been seriously damaged. At least with the changes to free checked bags we saw the writing on the wall and the carrier gave everyone a few months notice before changes go into effect.
With the carrier’s large presence in Austin, I’ve been waiting to see how everything shakes out. While I’m a big fan of assigned seating and extra legroom, I’m not a big fan of this change. It’ll mean longer boarding times as passengers try to cram luggage into overhead bins and may turn families away from Southwest. Fortunately, I’m a Rapid Rewards credit card holder so I’ll continue to get one free bag.
Summary
Southwest Airlines has officially announced the removal of free checked bags on most of its fares beginning May 28, 2025. While anyone who has been paying attention to the changes at the airline should have seen this coming, it is still a disappointment for many. At least the airline gave some advance notice with these changes unlike the devaluation of Rapid Rewards earlier this month.