Southwest Airlines Rolls Out New Change—Travelers Face Higher Fees

Southwest Airlines Rolls Out New Change—Travelers Face Higher Fees

Southwest Airlines, long celebrated for its customer-friendly policies, is undergoing significant transformations that mark a departure from its traditional approach. As of May 28, 2025, the airline has implemented a series of changes aimed at increasing revenue and aligning more closely with industry standards.

End of the “Bags Fly Free” Era

For decades, Southwest distinguished itself by allowing passengers to check two bags for free—a policy that became a cornerstone of its brand identity. However, this hallmark feature has been discontinued. Now, only Business Select and Anytime fare passengers, along with Rapid Rewards A-List Preferred members, retain the benefit of two free checked bags. Rapid Rewards credit card holders are entitled to one free checked bag, while all other passengers will incur fees for checked luggage.

The airline has not disclosed the exact pricing for the new baggage fees, but industry analysts anticipate charges comparable to those of other major carriers, potentially ranging from $30 to $40 for the first checked bag.

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Introduction of Basic Economy Fares

In a move to diversify its fare structure, Southwest has introduced a new Basic Economy tier. Passengers opting for this lower-priced fare will face several restrictions:

No checked bags included.

Flight credits from canceled flights will expire in six months.

No options for flight changes or same-day standby.

Assigned seating at check-in, with boarding in the final group.

These changes are set to take effect for flights scheduled from the third quarter of 2025 onward.

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Transition to Assigned Seating

Southwest’s open seating policy, a unique feature among major airlines, is being phased out. Starting in early 2026, the airline will implement assigned seating across its fleet. Passengers will have the option to select seats in advance, with premium seating available for an additional fee.

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Increased Fees for Boarding Perks

The airline has also raised fees for its EarlyBird Check-In and Upgraded Boarding options. EarlyBird Check-In now ranges from $15 to $99 per passenger, while Upgraded Boarding fees have increased to between $30 and $149 per segment.

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Strategic Shifts and Financial Pressures

These policy changes come amid broader strategic shifts within Southwest Airlines. Facing financial pressures and evolving market dynamics, the airline has sought to enhance revenue streams and improve profitability. In addition to the aforementioned changes, Southwest has filed a request with the U.S. Department of Transportation to expand its international service to countries with Open Skies agreements, signaling potential future growth in global markets.

Furthermore, the airline has entered into a partnership with Icelandair, allowing passengers to book connecting flights between the two carriers, thereby broadening access to European destinations.

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Customer Reactions and Industry Implications

The recent changes have elicited mixed reactions from Southwest’s customer base. While some travelers understand the need for the airline to adapt and remain competitive, others express disappointment over the loss of long-standing perks. The shift away from free checked bags and open seating represents a significant transformation in Southwest’s business model, aligning it more closely with industry norms.

As Southwest navigates these changes, the airline’s ability to maintain customer loyalty while achieving financial objectives will be closely watched by industry observers and passengers alike.