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Southwest sets pricing structure for checked baggage

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Southwest sets pricing structure for checked baggage

Southwest Airlines will charge passengers $35 for one checked bag and $45 for a second, as the airline rolls out previously announced changes to its baggage policy from May 28, 2025.

These figures were first reported by the Wall Street Journal and were disclosed in an internal message to Southwest employees.

A Southwest spokesperson confirmed these figures to Airline Economics.

In March, Southwest said that it would start charging passengers for checked baggage to boost revenues, marking the end of Southwest's core offering as part of its low-cost structure.

The airline said two free checked bags will be limited to business select tickets or customer who have top tier loyalty status, while those with loyalty status a notch lower will be allowed one free checked bag. Southwest management noted that the initiative will also drive acquisition of its Rapid Rewards credit card.

The airline stated that it carried twice as many bags compared to its competitors, which has proven “costly on many fronts” for the airline.

“We expect to introduce basic economy and bag fees for most fare products next month and remain on track to begin selling assigned and extra legroom seats in third quarter 2025 for operation beginning in first quarter of next year,” said Southwest CEO Bob Jordan, during the company’s first quarter earnings call in April.

Jordan reaffirmed that these initiatives are expected to improve the airline’s commercial offering and financial performance, providing value for both customers and shareholders.

On the airline’s website it states that its checked baggage fees will align with industry standards, while also stating that it will not charge the new baggage fees for any checked bags, if a booking was made on or before May 27, 2025.

This news also comes as Jefferies has lifted its rating on Southwest Airlines to “Hold” from “Underperform” after meeting with Jordan and CFO Tom Doxey. Analyst Sheila Kahyaoglu pointed to growing confidence in the airline company's realisable initiatives.

 

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