Today marks a shift for Southwest Airlines as it rolls out new policies that signal the end of an era for the budget carrier. Starting from May 28, the airline will begin charging for checked baggage - $35 for the first bag and $45 for the second, as FOX26 Houston reports. FOX26 Houston also mentions that Rapid Rewards Credit Cardmembers will benefit from an exemption, receiving free check for their first bag as well as up to eight additional passengers on the same reservation.
The introducing of this fee comes after more than half a century of a "bags fly free" policy, which many customers had come to identify with the carrier. As detailed in a CBS News report, Southwest's Business Select/Choice Extra and A-List Preferred customers will still enjoy two complimentary checked bags, while A-List and Chase Rapid Reward credit card members will still get one free checked bag. Additionally, today is the last opportunity for passengers to book flights without incurring the new baggage fee.
Changes don't stop at luggage fees. Southwest is entering a transitional period, setting out to discard its open seating policy in favor of assigned and premium seating options, available later in 2026. Extra legroom will be one of the new seating amenities passengers can anticipate, the airline teased back in April. May 28 also introduces a new baseline fare, christened "Basic," with the aim to offer a more budget-friendly option but with stricter restrictions, essentially replacing their existing "Wanna Get Away" fares, as stated by FOX26 Houston.
Even Southwest's flight credit system experiences a revamp. Historically, the airline has maintained that credits from either canceled flights or downgraded fares did not expire. However, moving forward, any credits issued on or after today's date will carry a shelf-life of either one year or six months, dependent on the fare type, according to CBS News. It's an adjustment that underscores the airline's pivot towards what can be viewed as a more conventional commercial model – one that aligns more closely with the industry standard.
Moreover, the airline has issued a directive concerning the use of portable charging devices during flights. As stated by a Southwest spokesperson to FOX News Digital, "Using portable charging devices while stored in a bag or overhead bin will no longer be permitted," a regulation set to kick in concurrently with the baggage fees.
While today's adjustments are significant, they are a response to a difficult financial period for Southwest and mounting pressure from activist investors. In a statement released in March, covered by CBS News, the airline projected these changes could generate an additional $1.5 billion in annual revenue. However, there's also an acknowledgment of potential blowback, as estimates suggest a possible loss of $1.8 billion from customers who may turn away due to the dismantling of its hallmark baggage policy. The airline's stock price has shown an uptick in pre-trading by 2.1%, indicating a mixed response from the financial markets as the new policies roll out.
