Southwest Airlines Issues Urgent Statement

Southwest Airlines, a major U.S. carrier renowned for its customer-friendly policies, has recently issued an urgent statement announcing significant changes to its baggage policy. Effective May 28, 2025, the airline will discontinue its longstanding “Two Bags Fly Free” policy, which allowed all passengers to check two bags at no additional cost. Going forward, free checked baggage will be limited to customers with elite status or those holding Southwest’s co-branded credit card.

This policy shift comes amid investor pressure to boost revenue and address the high costs associated with handling nearly twice as many checked bags compared to competitors. The “Two Bags Fly Free” policy, a hallmark of Southwest’s brand, has been popular among travelers who utilized it to transport a wide array of items, from kitchen sinks to Christmas trees and lobsters. The decision to end this policy marks a significant change in the airline’s approach to customer service and cost management.

The announcement has sparked a range of reactions from passengers and industry experts. Many loyal customers express disappointment, viewing the free bag allowance as a major benefit of flying with Southwest. Some fear that this change may lead to increased travel costs, particularly for families and leisure travelers who often check multiple bags. An industry expert noted that Southwest risks losing leisure travelers due to this new policy, which previously helped differentiate it from competitors. The move, along with the introduction of assigned and premium seating, aims to boost profits amid financial challenges and softer demand in the airline industry. While these changes could lead to a loss in longer-haul flight customers, Southwest will remain competitive in short-haul trips where checked luggage is less commonly required.

In response to Southwest’s policy change, competitors are adjusting their strategies to capture potential market share. Frontier Airlines, for instance, has launched a summer promotion offering free checked bags and carry-ons for flights booked before March 24, for travel between March 18 and August 18. This promotion includes an economy bundle with free seat selection and flight changes, aiming to attract passengers who might be disillusioned by Southwest’s new baggage fees. Frontier’s CEO emphasized the move as a customer-focused initiative and hinted at possibly making these perks permanent if the promotion is well-received.

Southwest’s decision to revise its baggage policy is part of a broader effort to enhance profitability and operational efficiency.

The airline has faced financial challenges in recent years, including a significant operational disruption in December 2022, known as the “holiday meltdown,” which led to thousands of flight cancellations and substantial financial losses. In December 2023, Southwest reached a settlement and received a $140 million fine from the U.S. Department of Transportation, the largest fine ever imposed by the agency, and reported losses exceeding $1.1 billion stemming from the crisis.

To address these challenges, Southwest is implementing a three-year business plan aimed at transforming the airline. In a message to employees, President and CEO Bob Jordan emphasized the importance of improving cost performance and accelerating initiatives to enhance operational resilience and customer experience.

The airline is also under scrutiny from regulatory bodies. The U.S. Justice Department is in discussions with Southwest to resolve a lawsuit issued by the Biden administration, accusing the airline of chronically delayed flights. The U.S. Transportation Department found that Southwest operated two persistently delayed routes from Chicago Midway to Oakland and Baltimore to Cleveland for five months in 2022 and is seeking maximum penalties. Southwest has until May 30 to respond.

Additionally, safety concerns have arisen following a recent incident at Chicago Midway Airport. On February 25, a Southwest Airlines flight came within 200 feet of a business jet in a near-miss incident. The Southwest flight had to abort its landing and execute an emergency maneuver to avoid a collision after the business jet entered the runway without authorization. The crew of the business jet reported that sun glare impaired their visibility, contributing to the incident. The Federal Aviation Administration has announced measures to address safety issues in aviation, including analyzing risks and conducting meetings with aviation groups.

As Southwest Airlines navigates these operational, financial, and regulatory challenges, the impact of the new baggage policy on customer loyalty and the airline’s competitive position remains to be seen. Passengers are advised to stay informed about policy changes and consider how these may affect their travel plans. For the latest information and assistance, customers can visit Southwest’s Help Center or contact their customer service.