In March 2025, Southwest Airlines rocked the industry, when it announced that it would start charging for checked bags as of Wednesday, May 28, 2025. With this policy having been implemented as of today, I want to go over all the details of Southwest’s new fee structure, and what this means for the airline.
In this post:
Southwest now charges $35-45 for checked bags
Southwest has long been known for its “Bags Fly Free” policy, whereby each passenger received two complimentary checked bags, regardless of the fare booked. That rule has changed for tickets purchased as of today.
So, how much is Southwest now charging for checked bags? As a general rule, you can expect to pay $35 for a first checked bag, $45 for a second checked bag, and $150 for a third (or more) checked bag. That pricing is more or less in line with the industry standard.
Some passengers are still be eligible for free checked bags:
- Those booking Southwest Business Select fares receive two free checked bags
- Southwest A-List Preferred members receive two free checked bags, and Southwest A-List members receive one free checked bag
- Southwest co-branded credit card members receive one free checked bag
For elite members and credit card members, those perks also apply to up to eight companions on the same reservation.
One primary exclusion to the bag policy is for inter-island flights in Hawaii, where more passengers are eligible for free or discounted bags. Let me emphasize that this applies specifically for flights between Hawaiian islands, and not for flights between the mainland and Hawaii.
This bag fee policy is only one of many changes that Southwest is making under pressure from its activist investors. The airline is also introducing assigned and extra legroom seating, among several other changes.
Southwest hasn’t really lowered fares overnight
When airlines add fees, they typically make the argument that they’re using an a la carte pricing model, and customers only have to pay for the services they need. With tickets coming with fewer inclusions today than they did yesterday, did the airline also lower its fares?
The short answer is “no,” which isn’t much of a surprise. Of course I can’t analyze all routes, but I picked six flights at random and compared the prices yesterday and today, and all the fares are more or less the same. Four flights have exactly the same pricing, one flight is $5 more expensive, and one flight is $7 less expensive, so that seems to me to be in line with typical fluctuations.
Now, it’s anyone’s guess if Southwest can actually maintain those same fares without the same inclusions, as the competitive landscape changes. After all, historically Southwest has had higher base fares than the competition, on average.
I can’t wait to see what financial impact this has
Southwest has historically been the most differentiated US airline, in terms of not really caring what the competition does. People have loved Southwest, and the airline has relied on that to generate a revenue premium.
We’ve never before seen an airline update its business model to the extent of what we’re seeing at Southwest, and I’m utterly fascinated to see how all of this impacts the company’s bottom line.
Keep in mind that less than a year ago, Southwest executives insisted that charging for checked bags would be the wrong move. They estimated that they would generate up to $1.5 billion from baggage fees, but that they’d lose $1.8 billion in market share. Then they ultimately backtracked on that claim, clearly under pressure from activist investors.
It’s one thing if this change were being made in isolation, but of course we’re seeing the airline change just about everything else with its business model as well.
What will this mean for the company’s bottom line? Will the airline benefit from its legacy goodwill, and will these changes lead to people continuing to fly Southwest for its robust network, all while picking up more Southwest credit cards?
Or with these changes, is Southwest really backing itself into a corner? After all, Southwest has a high cost structure, with no first class and no long haul flying, which are two areas where many airlines have been succeeding as of late. Will those who were loyal to Southwest now consider flying another airline, given that Southwest is getting rid of what makes it different?
I don’t know how this is going to play out. What I do know is that some of the brightest people in the industry who run companies competing with Southwest (like United CEO Scott Kirby) are celebrating this change, so that’s probably not a good sign for Southwest.
What’s my prediction? I could be totally wrong, but I suspect that a couple of years down the road, we’ll see that this plan was all a wash, more or less. The airline will benefit a bit from more credit card sign-ups and fees, but will struggle by losing some business to other airlines. I don’t think this will be some game changer that massively elevates Southwest’s profitability, because the airline is otherwise in a tough position, given demand patterns.
Of course another major factor is how domestic demand evolves over the next couple of years. After all, it’s not a great environment for domestic airlines, especially outside of the premium segment.
Bottom line
For tickets booked as of today (May 28, 2025), Southwest has started charging for checked bags. The airline is charging $35 for a first checked bag and $45 for a second checked bag. Passengers booking the highest fares, as well as elite members and credit card members, continue to receive a free checked bag allowance.
It’s the end of an era at Southwest, so let’s see what all of this means for the carrier’s financials…
What do you make of Southwest’s checked bag fees, and what do you think it’ll mean for the bottom line?
The guy who ruined southwest is an absolute jerk.
I heartily dislike these changes. I loved that Southwest didn't nickel and dime passengers with fees for bags, fees to choose a seat, etc. For many years, they were no frills, but straightforward and efficient, with some flight crews who added humor to the pre-boarding shtick. You knew not to expect a meal, and the more substantial snacks were reserved for flights of 3.5 hours or more, and there were no extra legroom seats, but...
I heartily dislike these changes. I loved that Southwest didn't nickel and dime passengers with fees for bags, fees to choose a seat, etc. For many years, they were no frills, but straightforward and efficient, with some flight crews who added humor to the pre-boarding shtick. You knew not to expect a meal, and the more substantial snacks were reserved for flights of 3.5 hours or more, and there were no extra legroom seats, but you got a decent, straightforward fare and multiple flights per day, including to some secondary and tertiary airports.
What's the value proposition now?
I will probably still fly Southwest some of the time because I typically fly out of BWI, where Southwest accounts for 65-70% of flights, and they fly to some destinations I need to go to that have minimal options on other airlines. I will probably still get a checked bag much of the time...but I expect I will still be impacted by the new policies. The last time I flew American, I found that people trying to carry on bags and then having to gate check them because there was no bin space made boarding take what felt like a long time. I think Southwest risks slowing down their boarding process. I'm not a fan.
"What's the value proposition now?"
You answered your own question.
"they fly to some destinations I need to go to that have minimal options on other airlines"
Is that enough? Can it be sustained? ¯\_(ツ)_/¯
Stinks and will make me question my loyalty to Southwest. I’ll definitely shop around a whole lot more now.
As a cardholder, I consider the changes mainly good. I never check bags, but those who do will now subsidize my fare. I no longer have to play 24 hour roulette for a decent seat. I will board early so I'll get bin space. Won't have to line up for cattle call. And I'm still getting free WiFi
thank you.
WN's business model was broken.
They should not be blasted because they were the last one to subsidize the leisure travel of many Americans that brought the kitchen sink w them on vacation.
and the end of the cattle call will be a far bigger day in the history of aviation than charging SOME PEOPLE for checked bags
no one has asked how many baggage handlers WN will no longer need
@Tim Dunn
This preoccupation with Southwest's boarding process has always amused me. Like AA or Delta or United with their dozen boarding groups are any different? Same crap different name. At least Southwest could load a plane in under 30 minutes, which is more important to most fliers than inflating the egos of the "elites".
And I disagree, Southwest (or more accurately, the vulture capital investors) should be blasted. I trust Southwest's original findings...
@Tim Dunn
This preoccupation with Southwest's boarding process has always amused me. Like AA or Delta or United with their dozen boarding groups are any different? Same crap different name. At least Southwest could load a plane in under 30 minutes, which is more important to most fliers than inflating the egos of the "elites".
And I disagree, Southwest (or more accurately, the vulture capital investors) should be blasted. I trust Southwest's original findings that charging for bags would lose them more business than it would generate in direct revenue. Southwest was already in the same league as the big 3 in terms of price. As another commenter said, what's the value proposition for the consumer now? Same prices, but now we have to be nickeled and dimed for bags. Same price, but now the plane loads slower and we're less likely to keep Southwest's aggressive schedules. Why should I keep flying Southwest instead of Delta or United?
Rather than subsidizing your fare the checked bag fees will subsidize corporate, and therefore shareholder, profits.
Bold of you to assume anyone other than the bloodsucking vulture investor is getting subsidized.
@Ben Besides blasting BZ’s inappropriate, anti-Semitic comment you should make it where all racist, discriminatory, and sexist comments are banned.
The policies for the checked bags are in line with other airlines in the industry. If the airline gets enough pushback they may revert the policies. One reason many fly Southwest is because they go to airports that are just outside major cities.
I suspect tomorrow the boarding process will be a nightmare due to all the additional carry on bags. The bins are already full with free checked bags.
It will be an adjustment for both the gate agents and the SWA fliers. In time, it will be just like all the other US carriers. More gate checking and even slower boarding.
Everyone is still under the old rules since they purchased WGA fares. The effect will be gradual as WGA paxs decline and Basic tickets are sold.
No longer a reason to seek out Southwest flights, specifically anymore. Just stinks that they are primary carrier out of Indy. I only see airfares going through roof now.
I think they should have continued free bags for Anytime fares and only charged for Wanna get away or other super-economy fares.
I thought SW always had a lower cost structure. Is that no longer true? Flying only 1 type of plane saves maintenance costs and provides flexibility. Maybe they have new contracts that have increased costs.
Labor is the largest cost for US airlines and WN's labor costs per seat mile are comparable to the big 3 now. the big 3 have become more efficient while WN's workforce is becoming more and more senior. WN is still efficient but has lost a chunk of its advantage which is part of why their finances relative to the big 3 have deteriorated.
all airlines fly essentially the same planes - newer planes...
Labor is the largest cost for US airlines and WN's labor costs per seat mile are comparable to the big 3 now. the big 3 have become more efficient while WN's workforce is becoming more and more senior. WN is still efficient but has lost a chunk of its advantage which is part of why their finances relative to the big 3 have deteriorated.
all airlines fly essentially the same planes - newer planes are more fuel efficient but require more capital while older aircraft are the opposite; there is minimal advantage in aircraft related costs other than labor efficiency.
It isn't just about revenue but also involves costs; WN doesn't have an advantage anywhere.
No. They have a new investor who bought enough shares to take over the airline. He fired the CEO, loaded the board of Directors because he is more interested in short time wealth than steady income. Southwest will not survive this debacle.
What happens if you have A-List and a Credit Card? Is it one bag or two?
It’s one bag per passenger.
I live in Atlanta, so I am fortunate to have a plethora of options when I travel. If I didn't have the credit card, this would definitely reduce the amount of business I give them, as all things being equal, the free bag plus early bird would generally guarantee me saving money on exit row or bulkhead seating. I think this will definitely dissuade some folks from using them, but I also believe some folks...
I live in Atlanta, so I am fortunate to have a plethora of options when I travel. If I didn't have the credit card, this would definitely reduce the amount of business I give them, as all things being equal, the free bag plus early bird would generally guarantee me saving money on exit row or bulkhead seating. I think this will definitely dissuade some folks from using them, but I also believe some folks will spring for the affordably priced credit cards, and it will end up a wash.
Same situation for me, except I have the Delta card but not a Southwest card and not intending to get one in the near future. This basically removes Southwest as an option for me unless Delta is just exorbitantly more expensive for a similar routing.
WN will still make money flying point-to-point routes, but I don't think they stand a chance at competing in any of the big 3's hubs. They'll be just as expensive with no differentiating factors.
They may loser flyers but they will be making it up in bag fees which are nearly 100% profit driven and do not incur taxes.
LOL.
Loser flyers. Spot on.
I think the current economic environment will be a big factor. For airlines like UA and AA I am noticing when I booking flights - that the seats behind the exit rows are empty many times. But seats in Econ+ and MCE are pretty full. This tells me Elites are still traveling, but infrequent travelers have cut back - since they are likley more economically impacted by rising prices.
Another company destroyed by Zionist funded “shareholder activism”
@ BZ -- You have the right to your opinion, but I'm going to ask nicely that you please refrain from bringing this up on every post you comment on, because it's a distraction, and not constructive for the purposes of discussion. Going forward, I'll be deleting these kinds of comments.
@Ben Can you please also delete other rude and offensive comments made by BZ which you know from his past posts? It only generates hateful comments and that is what he wants. He only ever comments nonsense. Thank you, Ben!
Delete going forward? Blatantly anti-semitic hate speech is tolerated? Should have been deleted immediately every time. Your choice to keep it there. My choice whether to continue to read and highlight for others what is allowed to stay up in posts.
Don't conflate Zionism with Judaism. They are different.
BZ's comment is not helpful.
You're as boorish and petulant as Arps, BZ.
So is Southwest really moving forward with its haphazard sounding plan of reimbursing companion pass companions for the bag fee if the primary person on the reservation is A-list or a cardholder? I'm curious to see how this will be implemented.
This was my question. Can you elaborate about this plan?
Southwest has only promised that the companion holder can apply for a refund in this scenario. But they haven't said how it'll happen. Of course this is all only necessary because of how Southwest's legacy system adds the companion under a different PNR. Maybe eventually they'll find a way to add the companion on the same PNR to make these bag benefits automatic.
Southwest already revealed that its RASM is weaker than they projected at the beginning of the year.
...Not all of it could be due to the negative press WN has received about all of the new initiatives they are rolling out and could be overall domestic demand related but WN needs to make some very convincing comments in their next earnings call in about 7 weeks if investors are to stay w/ the airline.
Southwest already revealed that its RASM is weaker than they projected at the beginning of the year.
Not all of it could be due to the negative press WN has received about all of the new initiatives they are rolling out and could be overall domestic demand related but WN needs to make some very convincing comments in their next earnings call in about 7 weeks if investors are to stay w/ the airline.
let's keep in mind that UA's margins will fall as it has to absorb the likely very costly settlement w the AFA and then follow at least w/ the mechanics. There are still four other groups of employees that have amendable contracts but UA has had a labor cost advantage for years which helped them to go after WN and other LCCs and ULCCs and that will be eroded in the 2nd quarter and beyond, assuming the UA FAs ratify their contract proposal.
WN is a very large airline so the big 3 as well as other airlines can add relatively small amounts of capacity and siphon off WN passengers if WN can't convince their high revenue customers of some value in the very near future.
Can only believe that the boarding process will be hindered much more by all those bringing the bags they didn't want to check.
This was my first thought as well
Exactly!
The overhead bins are already full. If you are flying basic, like other airlines, you will need to gate check bags. Every other airline manages this process and WN will be no different.
100%. This will result in significant delays and late arrivals. Southwest routinely schedules 40 minutes turns compared to 1 hour at most of the big 3. Even now this provides zero flexibility when inbound aircraft have delays due to weather or ATC reasons with the trick down effect to the next set of flights. I would steer clear of booking their late evening flights as they are likely to average 60+ minute late arrivals given...
100%. This will result in significant delays and late arrivals. Southwest routinely schedules 40 minutes turns compared to 1 hour at most of the big 3. Even now this provides zero flexibility when inbound aircraft have delays due to weather or ATC reasons with the trick down effect to the next set of flights. I would steer clear of booking their late evening flights as they are likely to average 60+ minute late arrivals given all of the tight turns though out the day plus all the extra baggage issues.
So tickets booked before May 28 for travel after May 28 will not have checked bag fees?
My question also. Please respond.
Correct. Youre locked in with your 2 free bags if you book before the change
Worst part will be WN fliers shifting over to Big 3 flights. Wheelchairs and all.