Southwest Airlines has announced it will start charging customers for checked bags, ending its almost 60-year-old policy. Taking effect for flights booked after May 28th, the decision ends decades of the airline’s signature offering which served as a key differentiator in the airline industry.
The Dallas-based airline, which has prided itself on allowing passengers to check two bags at no cost, will now require those who are not Rapid Rewards loyalty programme members, business class ticket holders, or credit card users to pay for checked luggage.
While the airline has yet to disclose specific fees, the change is part of a broader strategy to boost profits and adapt to shifting market pressures.
Southwest CEO Bob Jordan stated: “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.” This comes as Southwest faces mounting challenges, including a recent round of layoffs impacting 15% of its corporate workforce and a shift to assigned seating—another break from tradition.
The decision to introduce bag fees has sparked considerable backlash from customers who once embraced the airline’s customer-friendly policies. In the past, Southwest’s tagline, “Bags Fly Free,” became synonymous with its brand identity, drawing in travelers who valued the perk. However, as the airline aims to increase revenue amid pressure from activist investors, it risks alienating loyal customers who have long championed its unique offerings.
Southwest’s management had previously touted its free baggage policy as a significant asset, with estimates suggesting that introducing fees could generate approximately $1.5 billion annually. Yet, the airline also acknowledged potential losses of about $1.8 billion from customers who might opt for other carriers because of the new fees.