- Final day for free checked bags on Southwest flights booked after June 26
- New $35-$40 fees align with industry standards, exceptions for premium customers
- Assigned seating and red-eye flights coming as airline overhauls operations
- 1,750 corporate jobs cut amid pressure to boost profitability
Southwest Airlines’ iconic free baggage policy has reached its expiration date. The carrier now joins competitors in charging travelers $35-$40 per checked bag unless they hold premium tickets, elite loyalty status, or Southwest credit cards. Analysts project this could generate $1.4 billion annually from fees, though some warn it risks alienating the 12 million annual passengers who previously chose Southwest specifically for this perk.
The policy shift coincides with broader operational changes. Passengers will soon experience assigned seating replacing the open-boarding system, a structure 63% of fliers prefer according to J.D. Power surveys. New red-eye routes aim to maximize aircraft utilization, while portable charger restrictions address FAA concerns about lithium battery incidents rising 42% industry-wide since 2021.
Industry observers note three critical implications: First, budget carriers globally are adopting à la carte pricing models – European rival easyJet saw 12% ancillary revenue growth after implementing checked bag fees in 2023. Second, safety protocols now prioritize lithium battery containment, with Delta recently requiring power banks in clear plastic pouches. Third, loyalty programs are becoming revenue fortresses – United’s MileagePlus generated $5 billion in 2023 through enhanced member benefits.
Regional impacts are already visible in Southwest’s Dallas hub. A recent DFW Airport survey shows 29% of leisure travelers now considering Frontier for shorter trips despite fees, while business flyers increasingly favor American’s premium economy for guaranteed luggage allowances. Southwest’s Rapid Rewards signups surged 18% post-announcement, suggesting customers are adapting to the new points-driven landscape.
The airline’s restructuring extends beyond passenger policies. Workforce reductions eliminated 15% of corporate roles, primarily in marketing and customer experience departments. Activist investors continue pushing for cost controls, with new board members demanding $2.3 billion in annual savings through fleet optimization and automated check-in processes.
