Southwest Airlines has announced a significant shift in its baggage policy, marking the end of its long-standing tradition of allowing passengers to check two bags for free. This change, effective May 28, 2025, will require most travelers to pay for checked luggage, a move that has raised eyebrows among loyal customers and industry observers alike. Historically, Southwest's "two bags fly free" policy has been a cornerstone of its brand identity, setting it apart from competitors who have increasingly adopted baggage fees as a revenue stream. The airline's decision to implement these fees is part of a broader strategy aimed at increasing profitability and adapting to changing market dynamics.

Under the new rules, only members of the Southwest Rapid Rewards A-List Preferred program and passengers who purchase Business Select tickets will continue to enjoy the benefit of two complimentary checked bags. A-List members will receive one free checked bag, while those holding a Southwest credit card will also be eligible for similar privileges. All other passengers will incur fees for their first and second checked bags, although specific fee amounts have yet to be disclosed. This policy shift comes as Southwest seeks to deepen customer loyalty among its most engaged clientele while generating additional revenue from travelers who do not fall into these categories.

Bob Jordan, CEO of Southwest Airlines, emphasized that this decision is driven by the need to meet current and future customer demands while also attracting new demographics. The airline aims to return to profitability levels expected by shareholders amid growing pressures from activist investors. Just months ago, Southwest had assured customers that it would not charge for checked bags; however, the changing landscape of the airline industry and financial pressures have led to this reversal. Alongside the baggage fee changes, Southwest is also introducing a basic economy fare option that includes assigned seating and additional legroom features.

The implications of this policy change extend beyond just baggage fees; they signal a broader transformation within Southwest Airlines as it moves away from some of its most recognizable customer-friendly practices. In addition to the new baggage fees, the airline has already transitioned from an open seating arrangement to assigned seating, further altering the travel experience for its customers. As Southwest navigates these changes, it must balance maintaining its loyal customer base with the need to adapt to competitive pressures in the airline industry. This strategic pivot reflects a significant departure from the airline's historical approach and raises questions about how it will affect customer loyalty moving forward.