American carrier Southwest Airlines has gone down in history as the first aviation company to operate a no-frills, low-cost business model. This came at a time when tickets still included checked bags, food and beverages by default – and long before Spirit, Ryanair or EasyJet took to the sky. Since then, things changed quite a lot. Other airlines started to offer cheaper fares than Southwest, but also unbundled them. As of March 2025, Southwest was the last major US airline two include two checked bags of 22 kg each in every fare type.
This is about to end, as the airline announced Tuesday morning. From May 28 onward, new bookings will no longer include checked bags. The news is part of major operational changes deemed necessary by a investor that took over the board in 2024. After announcing operating profits for 46 years straight (1973 – 2019), the airline got hit hard by the Covid-Pandemic and has been losing money since. As part of the changes in strategy, Southwest flights started showing up on Google Flights, the airline began operating red-eye flights and the Open Seating policy will be abolished.
Tickets Include Checked Bags Until May 27
The airline will implement the new policy on May 28, 2025. That means, you can still enjoy free checked bags on your Southwest flight if you book by May 27 or earlier. After that day, you will have to pay extra for each bag you check in. Only Southwest frequent flyers, owners of select credit cards and people opting for the expensive Business Select fare will enjoy on free checked bag when booking after that day.
In addition to that, the airline announced the following changes:
- Rapid Rewards frequent flyers earn up to 67% less points (effective immediately)
- Re-introducing expiration dates for Flight Credits a year after earning them
Bottom Line
Southwest Airlines enjoyed the reputation of a lovable dark horse on the US aviation market. Its key advantages were free hold luggage and the Open Seating policy, which worked without assigned seats on a first-come-first-served basis. Their new business daddy, Elliot Investment, has decided to eliminate these unique selling points in favour of short-term profits. Southwest’s leadership has previously criticized by their new investors for being stubborn and stuck in the past.
While frequent flyers and credit card holders may still see an upside flying Southwest, casual passengers have no incentive to choose the airline over the competition. By 2026, all large US airlines will operate under similar, anti-consumer policies.
Translated and edited by Felix
Cover Picture: Lukas Souza