We are witnessing a significant shift in airline policies.
Southwest Airlines, known for its long-standing tradition of allowing passengers to check their first two bags without any fees since its inception nearly sixty years ago, has announced a new luggage fee structure. Starting with flights booked on May 28 and later, passengers will be subject to these new fees, marking a pivotal change in the airline’s approach.
This change in the policy of complimentary baggage is part of a broader initiative aimed at enabling the airline to achieve the profitability levels that both the company and its shareholders anticipate. According to Southwest CEO Bob Jordan, this move is essential for the airline’s financial health and sustainability.
Despite the upcoming changes, Southwest Airlines will still provide two free checked bags for “A-List Preferred” and business-class passengers. Additionally, “A-List” members are entitled to one free checked bag, while Southwest rewards cardholders will receive a credit statement that reimburses them for baggage fees incurred. Notably, one personal item and one carry-on bag will continue to be complimentary.
As of now, Southwest has not disclosed the specific pricing for checked bags. However, it’s worth noting that competing airlines typically charge between $40 and $75 for each checked bag, which could influence customer decisions going forward.
This significant shift in baggage policy comes at a challenging time for the airline industry as a whole.
Earlier this week, several major airlines revised their earnings forecasts, citing economic uncertainty that has prompted both consumers and businesses to scale back their travel expenditures. Contributing factors to this situation include devastating California wildfires, recession anxieties stemming from former President Donald Trump’s tariff policies, disruptions in travel for government employees, and a series of tragic incidents involving aircraft failures and accidents.
In a significant staff reduction effort, Southwest Airlines announced plans to lay off approximately 15% of its corporate workforce, translating to around 1,750 positions. Additionally, in a move that marks the end of an era, the airline indicated it would eliminate another longstanding practice: open seating. The implementation of assigned seating is slated for 2026.
Understanding Baggage Fees: How Do Other Airlines Compare?
Historically, Southwest Airlines has stood out as one of the few major U.S. airlines that did not charge for checked bags. However, this practice has changed as most of its competitors have introduced checked baggage fees over the past decade. American Airlines pioneered this trend by implementing a checked-bag fee during the Great Recession in 2008.
Since then, the trend has gained momentum within the industry, transforming baggage fees into a substantial revenue stream for many airlines. A study conducted in 2022 revealed that baggage fees accounted for approximately 3.3% of the revenue generated by major legacy airlines, such as American and Delta. In contrast, budget carriers like Spirit and Frontier rely even more heavily on these fees, which constitute over 21% of their total revenue.
To provide a clearer perspective, here’s an overview of the baggage fees currently charged by popular airlines for standard economy-class tickets.
American Airlines: A Breakdown of Their Baggage Fees
- Passengers are allowed one free small personal item and one complimentary carry-on bag
- The first checked bag costs $40 (or $35 if paid online) for domestic flights, while the second checked bag incurs a fee of $45.
- Select international flights offer one free checked bag.
Delta Airlines: What You Need to Know About Their Baggage Fees
- One free small personal item and a single carry-on bag are permitted
- The first checked bag is priced at $35 each way, while the second checked bag costs $45 for domestic journeys.
- Some international flights allow for one complimentary checked bag.
JetBlue: Current Baggage Fees Explained
- Passengers may take one small personal item and one carry-on bag free of charge
- The first checked bag is priced at $45, and the second checked bag costs $60 for domestic flights.
- On transatlantic flights, the first checked bag is $65, and the second is $105.
- During peak travel periods, costs may increase by $5-$10 per bag.
United Airlines: A Summary of Their Baggage Policy
- Only one personal item is complimentary for domestic flights.
- The first checked bag typically incurs a charge of $40 for domestic flights, with the second bag costing $50. A pre-pay discount of $5 may apply.
- On select international flights, the first checked bag is free.
In many instances, airlines provide their own travel credit cards that come with benefits such as free baggage allowances and various discounts, enhancing the overall travel experience for cardholders.
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