Southwest Airlines has announced it will begin charging for checked bags starting May 28, ending its long-standing "Bags Fly Free" policy that's been in place for nearly 60 years.

Key Changes:

• First and second checked bags will now incur fees
• A-List loyalty members and business fare travelers remain exempt
• Exact pricing hasn't been announced but expected to align with competitors
• Change follows recent shift from open seating policy

Financial Motivation:

• Southwest earned $73 million from baggage fees in 2023
• Competitors earned significantly more:
  • American Airlines: $1.4 billion
  • United Airlines: $1.2 billion
  • Delta Airlines: $985 million

Impact on Travelers:

• Ticket prices expected to remain stable
• Likely increase in carry-on luggage
• Potential slower boarding process
• Regular travelers will need to factor in new baggage costs

Additional Southwest Changes:

• Assigned seating implementation by 2026
• Introduction of premium seating options
• Expansion to Expedia ticket sales
• 15% reduction in corporate workforce (saving $210 million)

The policy change reflects Southwest's broader shift toward a traditional airline model, driven by pressure from activist investors and the need to increase revenue. While maintaining competitive base fares, the airline is aligning its services with industry standards, marking a significant departure from its budget-friendly origins.

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