Southwest Airlines Concludes Its 54-Year Tradition of ‘Bags Fly Free’ Policy
On May 28, 2025, Southwest Airlines officially concluded its iconic “Bags Fly Free” policy. This marks the end of a 54-year tradition that set apart the Dallas-based carrier from all other major U.S. airlines. The airline has now aligned with industry standards, charging $35 for the first checked bag and $45 for the second, after decades of resistance.
The policy change impacts most fare types, with a few exceptions. The following groups can still check bags for free:
- A-List loyalty members
- Business Select travelers
- Southwest credit card holders
This decision was influenced by the mounting pressure from activist investor Elliott Investment Management. They secured five board seats and advocated for changes that would generate more revenue.
This transformation signifies a fundamental shift from Southwest’s traditional business model. The airline also has plans to eliminate open seating and introduce assigned seats by late 2025. These changes are projected to generate hundreds of millions in additional revenue. However, some analysts are skeptical about whether Southwest can remain competitive after forfeiting its key differentiators.
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Source: Airways Magazine