Southwest Will Charge At Least $35 For Checked Bags Starting Tomorrow

Topline

Southwest Airlines passengers will have to pay at least $35 for a checked bag starting Wednesday, several outlets reported, as the airline is set to end its long-running free baggage policy that was a core part of its brand identity for several years.

A Southwest Airlines Boeing 737 taxis at Ronald Reagan Washington National Airport in Arlington, … More Virginia.

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Key Facts

According to the Wall Street Journal and Reuters, nearly all passengers flying on Southwest will need to pay $35 for one checked bag and $45 for a second starting Wednesday.

The airline had announced the plan to charge for checked luggage in March without offering pricing details, but the Journal reported that Southwest employees have been informed about the fees through an internal message.

Aside from charging for checked luggage, the airline will also start offering a new “basic” fare tier starting Wednesday—a low-cost, no-frills offering that will replace the airline’s current cheapest “Wanna Get Away” tier.

Basic ticket holders will be among the last to board the plane and will not receive perks like advanced seat assignments once it becomes available later this year.

Southwest shares are up 1.20% in premarket trading on Tuesday.

Who Will Be Exempt From Baggage Fees?

While announcing the move in March, the airline said its previous two free checked bags perk will still be available to passengers who hold the top-tier “A-List Preferred” on its Rapid Rewards loyalty program or those who purchase the priciest “Business Select” tickets. Flyers who hold a Southwest co-branded credit card or are on the second-highest loyalty program tier will be allowed to check in a single piece of baggage for free.

What Else Is Changing With Southwest Airlines?

Last year, the company announced plans to ditch another long-time core offering, its open seating policy, and replace it with assigned seating. In addition to assigned seating, the low-cost carrier will also start offering premium seating options that include extra legroom. According to the Journal, tickets with assigned seating will go on sale later this year.

Key Background

In its March announcement, the company described it as a “strategic” bid to boost revenue. The airline’s CEO, Bob Jordan, suggested these changes would allow the airline to reach new customer segments and “return to the levels of profitability that both we and our shareholders expect.” Free checked bags have been core to Southwest’s brand for years and the company even owns a trademark on the “Bags fly free” slogan. When the seating policy changes were announced last year, the airline insisted that “Bags fly free” would remain untouched. But Southwest came under intense pressure from activist investor Elliott Investment Management, which disclosed a $1.9 billion stake in the airline and criticized the company’s leaders for showing a “stubborn unwillingness to evolve.”

How Much Did Southwest’s Rivals Earn From Baggage Fees Last Year?

According to the Bureau of Transportation Statistics, Southwest earned $83 million from baggage fees in 2024, which is an increase from the $73 million it made in 2023. However, this is still much lower than rivals like American Airlines, United and Delta, which earned $1.5 billion, $1.3 billion and $1.06 billion, respectively.