The Increase in baggage fees at Southwest Airlines
Southwest Airlines has announced a significant change to its baggage pricing policy, which will affect passengers affected by this decision. Over the past three years, the airline has been a leader in its baggage policy, offering free access to checked bags for shortcharged passengers, based on a program called "Rapid Rewards." However, now, passengers will be charged for checked bags, starting from Wednesday.
Passengers receiving their free bags from Wednesday
According to multiple sources, almost every passenger flying on Southwest will soon be charged for checked bags starting from Wednesday. The cost range for baggage fees will start at $35 for the first checked bag and go up to $45 for a second bag. This change was first announced in March, but it was not widely updated until internal messaging reached all passengers.
The shift to a more cost-effective pricing strategy
This pricing strategy represents a critical shift for Southwest. Previously, it offered a lower "Wanna Get Away" fare for the second bag, but now, it’s clear that passengers will eventually have to invest in baggage fees. The airline has also introduced a "Basic" fare tier, which will start being available later in the year and offer a cheaper alternative for some fare-seekers.
Passengers who are enrolled in the Rapid Rewards program or purchasing the priciest assigned "Business Select" tickets will still have access to the free bags. However, those with "A-List Preferred" credits or second-tier loyalty points will travel without any baggage fees. Those who hold co-branded credit cards will also receive their first bag free when they board.
The repercussions of high baggage fees
The introduction of baggage fees will have a ripple effect on Southwest’s passengers. There are welcome bonuses where baggage fees will go completely to baggage processing and extra fees added to the total bill. It’s unclear at this stage whether members of the "Second-Highest" loyalty program will start receiving baggage, but the program may not have been initially affected by the baggage fee increase.
Baggage fee policies from last year
Last year, Southwest also announced a significant change to its baggage policies, this time around the seating policy. The airline decided to replace the open seating policy with assigned seating, which aims to improve customer service by ensuring that all passengers feel more stimulated. The basic fare tier will be available later this year, and it will include assigned seating.
Competitor’s performance in baggage fees
Southwest has established itself as a leader in generic earning, with $83 million earning from baggage fees in 2024, compared to competitors like American Airlines, United Airlines, and Delta Airlines, who collectively earned $1.5 billion. This reflects Southwest’s dominance in the baggage industry, where it has long been a key player.
Summary of baggage fee changes
Southwest Airlines will officially increase baggage fees starting Wednesday, with passengers facing at least $35 for the first bag and $45 for the second. While this decision was made with strategic aims to attract new customers and increase profit margins, it will come with significant repercussions in terms of welcome bonuses and the effects on passengers who can no longer avoid carrying extra bags. The introduction of baggage fees also highlights Southwest’s ongoing commitment to maintaining profitability and enhancing customer experience.
