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Southwest Airlines to End Free Checked Bags Policy After 54 Years

The airline will begin charging for checked luggage on most tickets purchased after May 28, citing financial pressures and evolving strategies.

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FILE - This July 17, 2019 file photo shows Southwest Airlines planes at Phoenix Sky Harbor International Airport in Phoenix. Southwest Airlines President Tom Nealon, who was once seen as a leading candidate for CEO but was passed over this year, has retired. Southwest said Monday, Sept. 13, 2021, that Nealon, 60, will still serve as an adviser focusing on environmental issues, including plans to reduce carbon emissions. (AP Photo/Ross D. Franklin, File)
FILE - Travelers wait at the check-in counter for Southwest Airlines in Denver International Airport Thursday, Dec. 19, 2024, in Denver. (AP Photo/David Zalubowski, File)
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Overview

  • Southwest Airlines will charge for checked luggage for the first time in its 54-year history, ending its iconic 'bags fly free' policy.
  • The change applies to tickets purchased on or after May 28, with exceptions for top-tier loyalty members, Business Select ticket holders, and Southwest credit card users.
  • The decision follows pressure from activist investor Elliott Investment Management to improve financial performance and align with industry practices.
  • Southwest is also introducing a new basic economy fare and revising its frequent flyer program, including dynamic pricing for rewards and adjusted point earnings based on ticket price.
  • These changes are part of broader cost-cutting measures, including layoffs, route reductions, and the retirement of long-standing executives, as the airline seeks to address rising expenses and declining competitiveness.