What Southwest Airlines is Changing

Southwest Airlines to Charge for Checked Luggage, Ends "Two Bags Fly Free" Policy

Southwest Airlines announced on Tuesday that it will start charging customers to check their luggage, marking a significant shift away from its long-standing "two bags fly free" policy. The airline will begin charging for checked bags on tickets purchased on or after May 28.

The move is part of a broader plan by Southwest to ditch its customer perks and policies in an effort to increase revenue. The airline has been under pressure from activist hedge fund Elliott Investment Management to raise revenue and improve returns.

Who Will Pay for Bags?

Travelers who purchase any ticket except for Southwest’s top-level Business Select fare will have to pay fees to check bags. Customers who buy a Business Select ticket will still be able to check two bags for free. Top-tier A-List Preferred frequent flyer program members will also get two checked bags for free, as will those with a Southwest credit card.

How Much Will it Cost to Check a Bag?

Southwest didn’t disclose the exact cost to check a bag, but fees start at $35 per bag on competitors Delta, United, and American Airlines.

When Do the New Policies Take Effect?

The new checked baggage fees will go into effect for tickets purchased on or after May 28.

Can I Still Bring a Carry-On Bag?

Carry-on bag policies haven’t changed, even for basic economy tickets. All tickets will include a free carry-on bag, even for the new basic economy tickets.

But Won’t Everyone Else Bring a Carry-On Bag, Too?

Southwest has warned that customers will "undoubtedly carry on more luggage than before" and is taking steps to keep things moving. The airline will get mobile bag-tag printers and design new carry-on size guides to help customers check if their luggage fits as a carry-on.

Will There Be Longer Airport Lines?

Possibly. Southwest said it may redistribute staff to handle changing customer needs with the new bag rules and will equip staff with mobile printers. Airport lobbies will also see changes, with staff possibly handling longer transaction and queue times.

Why is This Happening?

Southwest has been under increasing pressure to raise revenue and improve returns after activist hedge fund Elliott Investment Management took a stake in the airline last year. Southwest executives have long told investors and customers that its "two bags fly free" policy is sacrosanct, setting it apart from competitors.

What Else is Happening?

Southwest is launching a basic economy fare that is not refundable and doesn’t allow for changes. It won’t allow for same-day standby tickets. Flight credits for those "basic" tickets, if unused, will expire in six months, while credits for other flights will expire in 12 months.

Conclusion

Southwest Airlines’ decision to charge for checked luggage marks a significant shift away from its long-standing "two bags fly free" policy. The airline is trying to increase revenue and improve returns, but the move may lead to longer airport lines and changed customer behavior. As the airline continues to adapt to a competitive market, it remains to be seen how its new policies will impact customer satisfaction and loyalty.

Frequently Asked Questions

Q: When do the new checked baggage fees go into effect?
A: The new checked baggage fees will go into effect for tickets purchased on or after May 28.

Q: Who will have to pay for checked bags?
A: Travelers who purchase any ticket except for Southwest’s top-level Business Select fare will have to pay fees to check bags.

Q: How much will it cost to check a bag?
A: Southwest didn’t disclose the exact cost to check a bag, but fees start at $35 per bag on competitors Delta, United, and American Airlines.

Q: Can I still bring a carry-on bag?
A: Yes, carry-on bag policies haven’t changed, even for basic economy tickets. All tickets will include a free carry-on bag, even for the new basic economy tickets.