Southwest Airlines is ending its long-standing tradition of allowing passengers to check bags for free. Starting with flights booked on or after May 28, 2025, the airline will implement new baggage fees. NPR reported that while passengers with A-List Preferred status or those flying on Business Select fares can still check two bags for free, A-List members and Rapid Rewards Credit Card holders will be entitled to one free checked bag. All other passengers will need to pay for their first and second checked bags.

This strategic shift is part of Southwest's broader efforts to improve profitability amid financial struggles and mounting pressure from investors. According to AP News, the company anticipates generating $1.5 billion annually from these baggage fees despite the risk of losing $1.8 billion from customers who might choose competitors over the new fee structure. The move brings Southwest in line with other major U.S. airlines like Delta, United, and American, which already charge for checked luggage, a trend that saw U.S. carriers earn $5.5 billion from baggage fees last year, as noted by FT.com.

Additionally, Southwest is set to introduce other policy changes, including assigned seating and a new basic fare option, which will provide lower ticket prices with fewer flexible options. Axios highlighted that these changes are expected next year, potentially marking another significant shift in how passengers experience Southwest flights.