Southwest Airlines Is Dropping Its Free Bag Policy

After dropping one of its most signature policies last summer, Southwest Airlines is making a slate of changes that will significantly alter the way guests fly with the airline.

Southwest Airlines made five major changes to its customer policies on Tuesday morning, but perhaps the most consequential is the end of its free checked bag policy. That policy, along with the open seating policy that ended last summer, was a hallmark of the airline’s customer-first approach.

Starting with flights booked on or after May 28, Southwest will only offer two free checked bags to its Rapid Rewards A-List Preferred members — its highest status level — and those traveling on its new Business Select fares. Standard A-List members will get one free checked bag, and Rapid Rewards Credit Card holders will also be credited with one free checked bag.

All other passengers will have to pay for both their first and second checked bags. The airline has not yet revealed how much those bags will cost.

The change may bring Southwest in line with the rest of the industry, but it removes another policy the airline had used as a key differentiator for its customers. The airline had been under pressure last year due to its activist investor battle with Elliott Management, but even last summer, CEO Bob Jordan said the “bags fly free” policy was the No. 1 reason, outside of fare and schedule, that travelers chose Southwest.

Last April, when rumors of a bag policy change surfaced, Executive Vice President and Chief Commercial Officer Ryan Green said during the company’s quarterly earnings call, “No, we are not considering bag fees.” Even just last year, Southwest’s consumer marketing included its “Bags Fly Free” tagline:

At the same time, Southwest is launching a new basic economy fare, something that wasn’t available in the past. While standard ticket holders will soon be able to choose seats and pay for extra legroom — due to changes Southwest made last year — basic economy ticket holders will pay a lower fare because they won’t have those options.

The other changes include a new flight credit policy that will see credits expire one year or earlier from the date of ticketing and a new Rapid Rewards points policy that will see travelers earn more points on Business Select fares and fewer on Basic Economy fares.

All of the changes, including charging for bags and seat selection, are aimed at creating a more profitable airline, Bob Jordan said on Tuesday morning. That mission, which was at the center of the fight with Elliott, moved forward last month when Southwest announced it was slashing its corporate workforce as part of a cost-cutting effort to become a “more agile organization.”

The cuts will affect about 1,750 employees, primarily in corporate overhead and leadership roles, including some senior leadership and director positions.