Southwest Airlines Ends ‘Bags Fly Free,’ Marking the End of a Travel Perk Era

Southwest Airlines Ends Free Checked Bags, Marking the End of an Era

Southwest Airlines, long known for its customer-friendly policy of allowing two free checked bags, is officially ending the perk on May 28. The decision, which has drawn backlash from loyal travelers, comes as the airline faces increasing pressure to boost profits and compete with industry giants like Delta and United.

For over 50 years, Southwest stood out as the only major U.S. airline to offer free checked baggage, winning customer loyalty and setting itself apart from competitors. Now, with rising operational costs and shareholder demands, the airline is adopting a more traditional pricing model.

Customers React to the Change

Many frequent travelers are unhappy with the shift. MaKensey Kaye Alford, a 21-year-old singer from Alabama, expressed disappointment, saying, “It was the only reason I flew Southwest.” Others, like sales consultant Errol Joseph, noted that the change eliminates a major reason to stay loyal to the airline.

Southwest will still offer one free checked bag to customers with a Southwest-branded credit card, top-tier loyalty members, and premium ticket holders. However, for most travelers, this marks the end of a key Southwest advantage.

Financial Pressures and Industry Trends

The move follows growing pressure from Elliott Investment Management, a major Southwest shareholder, to increase profitability. While Southwest's business model has historically prioritized customer perks, shareholders pushed for changes to keep up with competitors.

Following the announcement, Southwest’s stock jumped nearly 9%, while rival airlines saw declines. Analysts predict that the baggage fees will add hundreds of millions of dollars to the company’s bottom line.

This shift is part of a broader trend in the airline industry, where perks like free baggage and complimentary services are increasingly reserved for loyalty program members or premium ticket holders. Other airlines, such as Delta and United, have also introduced incentives for members, including free in-flight Wi-Fi for loyalty participants.

Impact on Travelers and Airline Operations

The change could have operational consequences, as more passengers opt to carry luggage onboard rather than pay for checked bags. Harvard professor Frances Frei noted that Southwest’s historically fast turnaround times could suffer if passengers bring more bags into the cabin, slowing the boarding process.

In response, Southwest is rolling out measures to manage increased carry-on luggage, including mobile bag-tag printers for gate agents and expanded overhead bin space on its Boeing 737-800 and Max aircraft.

What’s Next for Southwest?

With the free baggage era coming to an end, the airline faces a key test: will loyal customers continue to fly Southwest, or will they look elsewhere for better perks? Competing airlines have already expressed interest in attracting disillusioned Southwest passengers.

For now, Southwest is betting that the financial benefits of charging for bags outweigh the potential customer loss. As the airline industry evolves, one thing is certain—free perks are becoming a thing of the past.




News Source: CNBC