Last Chance to Book A Southwest Flight Before New Bag Fees Take Effect

Today marks the final day for travelers to book a Southwest Airlines flight without incurring baggage fees, as the carrier ends its long-standing free checked bag policy. The change, which takes effect with flights booked starting Wednesday, marks a major shift for the airline known for allowing passengers to check two bags at no charge.

Beginning Wednesday, Southwest will charge $35 for a first checked bag and $45 for a second. Standard weight and size restrictions will apply.

For years, Southwest built its brand around the promise of free checked luggage, a feature that set it apart from other budget carriers. But going forward, only a select group of customers will continue to enjoy free bag allowances.

Passengers eligible for free checked bags under the new policy include:

• Rapid Rewards A-List Preferred members and Business Select fare travelers (still get two free checked bags),
• A-List members and some select customers (one free checked bag),
• Holders of Southwest’s co-branded credit cards will receive a credit for one checked bag.

Everyone else will be required to pay. The airline also plans to launch a new “basic” fare class for its lowest-priced tickets when the baggage fee policy takes effect.

Southwest estimated last year that the new baggage fees could generate around $1.5 billion annually. However, executives warned it could also result in $1.8 billion in lost revenue from customers who previously chose Southwest specifically for its free bag policy.

The policy overhaul comes alongside other changes at the Dallas-based airline. Starting Wednesday, passengers must keep portable chargers visible when in use, due to increasing safety concerns over lithium-ion battery fires.

Additionally, Southwest is preparing to phase out its open seating system, a practice it’s used for over 50 years. Starting next year, passengers can expect assigned seating on some flights.

Other changes on the horizon include:

• Charging extra for additional legroom,
• Introducing overnight red-eye flights.

These shifts come as Southwest faces growing pressure from activist investors to boost profits. In October, the airline reached a truce with hedge fund Elliott Investment Management, which had been pushing for major reforms. As part of the agreement, Elliott gained several seats on Southwest’s board.

Earlier this year, Southwest also announced it would be cutting 1,750 corporate jobs, about 15% of its office workforce—the first large-scale layoffs in the airline’s 53-year history.

Despite the ongoing turbulence, Southwest shares rose 3% in early trading Tuesday, tracking gains across the airline sector.