Southwest Airlines Checked Bag Fees Revealed: Bags Don’t Fly Free

In March 2025, Southwest Airlines rocked the industry, when it announced that it would start charging for checked bags as of May 28, 2025. With this policy being implemented as of tomorrow, Southwest has finally revealed what passengers can expect to pay, and there are no big surprises.

Southwest will charge $35-45 for checked bags

Southwest has long been known for its “Bags Fly Free” policy, whereby each passenger received two complimentary checked bags, regardless of the fare booked. That rule will be changing for tickets purchased as of Wednesday, May 28, 2025. Up until now, Southwest hasn’t actually revealed how much it will charge for checked bags, but now we know.

In an internal memo, Southwest has stated that with its new policy, it will charge $35 for a first checked bag and $45 for a second checked bag. That $35 and $45 pricing is more or less in line with the industry standard.

Some passengers will still be eligible for free checked bags:

• Those booking Southwest Business Select fares will receive two free checked bags
• Southwest A-List Preferred members will receive two free checked bags, and Southwest A-List members will receive one free checked bag
• Southwest co-branded credit card members will receive one free checked bag

For elite members and credit card members, those perks also apply to up to eight companions on the same reservation.

This bag fee policy is only one of many changes that Southwest is making under pressure from its activist investors. The airline is also introducing assigned and extra legroom seating, among several other changes.

I can’t wait to see what financial impact this has

Southwest has historically been the most differentiated US airline, in terms of not really caring what the competition does. People have loved Southwest, and the airline has relied on that to generate a revenue premium.

We’ve never before seen an airline update its business model to the extent of what we’re seeing at Southwest, and I’m utterly fascinated to see how all of this impacts the company’s bottom line.

Keep in mind that less than a year ago, Southwest executives insisted that charging for checked bags would be the wrong move. They estimated that they would generate up to $1.5 billion from baggage fees, but that they’d lose $1.8 billion in market share. Then they ultimately backtracked on that claim, clearly under pressure from activist investors.

It’s one thing if this change were being made in isolation, but of course we’re seeing the airline change just about everything else with its business model as well.

What will this mean for the company’s bottom line? Will the airline benefit from its legacy goodwill, and will these changes lead to people continuing to fly Southwest for its robust network, all while picking up more Southwest credit cards?

Or with these changes, is Southwest really backing itself into a corner? After all, Southwest has a high cost structure, with no first class and no long haul flying, which are two areas where many airlines have been succeeding as of late. Will those who were loyal to Southwest now consider flying another airline, given that Southwest is getting rid of what makes it different?

I don’t know how this is going to play out. What I do know is that some of the brightest people in the industry who run companies competing with Southwest (like United CEO Scott Kirby) are celebrating this change, so that’s probably not a good sign for Southwest.

What’s my prediction? I could be totally wrong, but I suspect that a couple of years down the road, we’ll see that this plan was all a wash, more or less. I don’t think this will be some game changer that massively elevates Southwest’s profitability, because the airline is otherwise in a tough position, given demand patterns.

Of course another major factor is how domestic demand evolves over the next couple of years. After all, it’s not a great environment for domestic airlines.

Bottom line

For tickets booked as of May 28, 2025, Southwest will start charging for checked bags. The airline has now revealed that it will charge $35 for the first checked bag and $45 for the second checked bag. Passengers booking the highest fares, as well as elite members and credit card members, will still get a free checked bag allowance.

It’s the end of an era at Southwest, so let’s see what all of this means for the carrier’s financials…

What do you make of Southwest’s checked bag fees, and what do you think it’ll mean for the bottom line?