Southwest Airlines to End Free Checked Bag Policy
As of May 28, 2025, Southwest Airlines will discontinue its long-cherished policy allowing passengers to check two bags free of charge. This decision marks a significant shift for an airline that has maintained this practice for over five decades.
Customer Reaction
The announcement has generated considerable backlash from loyal customers who view this change as a betrayal of the airline’s customer-friendly reputation. MaKensey Kaye Alford, a 21-year-old actress from Alabama, stated, “It was the only reason I flew Southwest,” indicating that she may consider other airlines in the future.
Errol Joseph, a frequent traveler, expressed disappointment as well, saying he might opt for Delta Air Lines if prices are comparable, citing that Southwest now lacks competitive advantages such as onboard entertainment features.
The Shift in Business Strategy
Southwest Airlines, which has historically held an impressive record of profitability, is under pressure to adapt its business model in response to increasing competition from major airlines like Delta and United Airlines. In recent years, the company has made several adjustments, including moves towards assigned seating and other changes that align it more closely with industry standards.
The company’s decision to introduce baggage fees aligns with a broader trend in the airline industry where airlines are retracting free services that once attracted customers. In 2023 alone, U.S. airline companies accrued over $7 billion from baggage fees.
Investment Dynamics
The decision to eliminate the two-free-checked bags policy has not only sparked reactions from passengers but has also attracted the attention of investors. Elliott Investment Management, a significant shareholder in the airline, has been advocating for changes to enhance profitability, which may have influenced this recent policy shift.
Stock prices for Southwest saw a notable uptick of nearly 9% following the announcement, contrasting the declines seen in its competitors. Analysts expect these policy modifications to potentially contribute hundreds of millions of dollars to the airline’s revenue.
Operational Considerations
As Southwest prepares for this transition, there are concerns about how the new baggage policy will affect operational efficiency. Historically, allowing free checked baggage facilitated quicker turnaround times, a crucial element of Southwest’s operational model.
In preparation, the airline is implementing various strategies to handle an expected increase in carry-on items. Measures include providing mobile bag-tag printers to gate agents and upgrading overhead storage space on their aircraft.
Conclusion
This major policy change will be officially put into effect at the end of May, and while there will be exceptions for premium customers and Southwest credit card holders, the broader implications for customer loyalty and operational dynamics remain to be seen. The upcoming months will reveal whether Southwest can maintain its status as a favorite among U.S. travelers amidst evolving industry standards.