Southwest Drops “Bags Fly Free,” Ending 60-Year Perk

Southwest Airlines is phasing out one of its most iconic promises — “Bags Fly Free.” Starting with flights booked after May 28, passengers who aren’t part of the airline’s loyalty program or seated in upgraded tiers will be required to pay for checked baggage, marking the end of a decades-old customer perk that once defined the airline’s identity.

For nearly 60 years, Southwest stood out in a crowded airline industry by offering two free checked bags, a policy that helped win over millions of loyal flyers. But that legacy is now being shelved as the airline scrambles to cut costs and appease investors, following a nearly 50% drop in stock value over the past five years.

The End of an Era

The change in baggage policy arrives amid a series of sweeping shifts at Southwest — all aimed at turning around flagging profits and staying competitive with major players like Delta and United. In tandem with the bag fee, Southwest will also reintroduce flight credit expiration dates, ending a pandemic-era policy that allowed credits to remain valid indefinitely.

These updates come as part of a broader corporate overhaul, reportedly influenced by Elliott Investment Management, a hedge fund that owns a $1.9 billion stake in the airline and has pushed for more aggressive cost-cutting measures.

“If Southwest Airlines had assembled a focus group and asked them ‘what’s the stupidest thing that we could do to ruin our company,’ this is what they would have come up with,” said Doug Gladden on X, echoing a wave of social media backlash.

A Brand Identity in Freefall

Once known for its quirky charm, no-fee approach, and egalitarian seating policies, Southwest has spent the last year systematically stripping away its most beloved features:

• Cabin redesigns introduced in early 2024 featured thinner, rigid seats mocked online as “lawn chairs” or “Ozempic seats.”
• The airline’s open seating policy — where passengers could choose any available seat — is being replaced with a tiered system that includes premium, higher-priced options.
• Now, with baggage fees on the table, Southwest is giving up the very perks that once made it stand out from the crowd.

In 2023, Southwest’s leadership explicitly stated that adding bag fees would be too damaging to the brand, estimating a $1.5 billion revenue gain would be wiped out by $1.8 billion in lost business. But with stock performance lagging and investor pressure mounting, the company appears to have reversed course.

Wall Street Cheers, Customers Jeer

Despite customer outrage, investors seem pleased. Following the baggage fee announcement, Southwest stock jumped around 9%. A similar uptick occurred after the airline recently announced plans to lay off 15% of its corporate staff — another step in its cost-cutting strategy.

The airline’s leadership argues that these changes are necessary to remain competitive. But with every perk stripped away, Southwest risks becoming just another airline, indistinguishable from the rest.

As the once-loyal customer base watches their favorite airline transform, many are asking the same question: Is this still Southwest?