Southwest Airlines baggage charges announced

The Southwest Airlines baggage charges are $35 for the first bag and $45 for the second bag.

Southwest Airlines baggage chargesSouthwest Airlines baggage charges are in effect. No longer will “bags fly free” on that airline. Those days are ending courtesy of the continuance of the hardball tactics of Elliott Investment Management L.P. (“Elliott”).

Effective immediately, Southwest Airlines’ baggage charges are now in effect. Southwest passengers with the highest loyalty status will still have free bags included. Credit card holders will also get a free bag. Plus, anyone traveling on a reservation with an elite loyalty member also receives the same baggage allowance.

The airline is now no different from any other airline, except perhaps in its service. But, many do not expect that to last.

The Board of Directors of Elliott expects Southwest Airlines’ baggage charges to mean hundreds of millions of dollars in profits.

The increase in profits leaves most passengers unimpressed. Already, many pine for the days when seats were unassigned, bags would fly free, when passengers could see all the fares on one page, and cabins were not carved up to increase profits. However, stockholders seem pleased, especially the Elliott group. These new fees are in line with what Southwest’s airline rivals charge, though some cost more.

The increase in profits is based on the amount made from the increased baggage fees and the amount lost by passengers shifting away because of the increased baggage fees.

Now, there is little to differentiate Southwest Airlines from other airlines. 

According to the Wall Street Journal:

Basic tickets don’t allow changes and won’t include advanced seat selection when Southwest starts assigning seats — passengers will be assigned seats at the back of the plane at check-in. If you cancel one of these tickets, you will get a flight credit that expires in six months, shorter than other ticket types.

Chief Financial Officer Tom Doxey said last week that the airline was out of sync with competitors’ bare-bones fare options. With too many features bundled in, there was little reason for Southwest customers to spend more on pricier tickets.

The end of free checked bags marks the big change in Southwest Airlines baggage charges.

You are being secretly taxed at airportsSouthwest trademarked the phrase “bags fly free.” They displayed it in planes and featured it prominently on billboards and in ads.

Southwest resisted bag charges and basic-economy tickets for years, arguing that they went against its customer-friendly ethos. However, the airline that once upended the industry has fallen behind and is facing pressure to become more like its rivals, despite having fewer than a handful of quarterly losses.

The Dallas-based carrier is shaking up its business model to generate additional revenue. It gave up some of its most distinctive features in the process.

According to USA Today, “Booking for the airline’s new red-eye flights recently opened. The first overnight flights will land next Valentine’s Day, in five initial nonstop markets:

  • Las Vegas to Baltimore
  • Las Vegas to Orlando
  • Los Angeles to Baltimore
  • Los Angeles to Nashville
  • Phoenix to Baltimore

The airline plans to eventually roll out red-eye flights to other markets and offer 24-hour operational capabilities.”

From an AI scanning of Southwest changes.

Seating Policy Overhaul

  • Southwest is transitioning away from its open seating model to assigned and premium seating, starting with bookings in the second half of 2025 and flights in 2026.

  • New seat types will include standard, preferred, and extra legroom options, with about a third of seats expected to be premium.

  • This shift aligns Southwest with competitors and responds to customer preference data showing most travelers now prefer assigned seating.

Fare Structure and Credit Policy Changes

  • The “Wanna Get Away” fare is being replaced by a more restrictive “Basic” fare, which limits the use of flight credits to six months for bookings made after May 28, 2025.

  • Flight credits issued on or after this date will expire in six months or one year, depending on the fare type, ending the previous policy of credits that never expired.

Safety Policy Update

  • Passengers must now keep portable charging devices visible during flights, rather than stored in bags or overhead bins, due to rising incidents of lithium battery fires.

Broader Impacts of Southwest Airlines baggage charges. 

  • Customer Loyalty: The baggage fee change, in particular, has sparked significant backlash from loyal Southwest customers, eroding a key differentiator and potentially leading to a loss of market share.

  • Financial Impact: Southwest expects to generate up to $1.5 billion annually from baggage fees, but also projects a possible $1.8 billion loss in business from customers who valued the free bag policy.

  • On-Time rate challenges: The WSJ on May 29, 2025, noted that Southwest has the fewest cancellations so far this year. It is inching closer to Delta and United, which have the best on-time rates according to aviation analytics firm Cirium.

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