Southwest Airlines Ends Free Bags and Open Seating Policies

Southwest Airlines Ends Free Bags and Open Seating: A New Era of Policy Changes

Southwest Airlines, long celebrated for its customer-friendly policies, is entering a new phase that redefines its brand identity. As of May 28, 2025, the airline is implementing sweeping changes to its baggage fees, seating arrangements, fare structure, and loyalty program. These updates mark a significant shift from the budget-friendly model that has defined Southwest for decades.

Historically, Southwest differentiated itself from competitors by offering two free checked bags and an open seating policy, features that appealed to cost-conscious travelers. However, mounting financial pressures, increased operational costs, and evolving industry standards have prompted the airline to reconsider these long-standing perks. These changes are being introduced at a critical moment as the airline industry continues to recover from economic disruptions and rising fuel prices.

For frequent flyers and occasional travelers alike, understanding these new policies is crucial. This article breaks down the key updates, the rationale behind them, and what they mean for Southwest’s future and for the broader airline industry.

Major Policy Changes: What’s New at Southwest?

Introduction of Checked Baggage Fees

Perhaps the most headline-grabbing change is the introduction of checked baggage fees. For flights booked or modified on or after May 28, 2025, passengers will now pay $35 for the first checked bag and $45 for the second. This is a stark departure from Southwest’s long-standing “bags fly free” policy that has been a cornerstone of its marketing and brand loyalty.

Passengers with a Rapid Rewards Credit Card will receive a credit for one checked bag. However, for the average traveler without this card, the additional cost may influence their choice of airline, especially when comparing total trip expenses.

This move aligns Southwest with legacy carriers like Delta, American, and United Airlines, which have long relied on ancillary fees as a significant revenue stream. According to the U.S. Department of Transportation, U.S. airlines collected over $5.3 billion in baggage fees in 2022 alone—a figure that continues to rise annually.

“Southwest’s move to charge for the first checked bag is a significant shift that may alter customer perceptions but is understandable as the airline faces rising operational costs,” Henry Harteveldt, Aviation Analyst

End of Open Seating and Introduction of Assigned Seats

Another major change is the gradual phasing out of Southwest’s open seating policy, which allowed passengers to choose their seats upon boarding. Starting in the second half of 2025, Southwest will begin offering assigned and premium seating options, with full implementation expected in 2026.

This transition will include the introduction of new seat types, such as standard, preferred, and extra legroom options. The move is designed to offer more choice and potentially generate additional revenue through seat selection fees, a model already used by most major airlines.

While some passengers appreciated the flexibility of open seating, others found it stressful and inconvenient. Assigned seating could improve boarding efficiency and reduce in-flight conflicts over seat selection, though it may also erode one of Southwest’s most unique features.

New Fare Structure and Expiring Flight Credits

Southwest is also rolling out a new baseline fare—dubbed the “Basic” fare—replacing the current “Wanna Get Away” fare. This new fare tier will be the most restrictive, offering the lowest price point but with limited flexibility. It mirrors similar basic economy fares offered by other airlines, which often exclude perks like seat selection and early boarding.

In addition, flight credits issued on or after May 28, 2025, will now have expiration dates. Depending on the fare type, credits will expire either six months or one year after issuance. Previously, Southwest flight credits did not expire, which was another customer-friendly policy that set the airline apart.

Flight credits issued before May 27, 2025, will not be affected by this change and will remain valid indefinitely. However, the new expiration policy may push travelers to use their credits more quickly and reduce the perceived value of booking flexibility with Southwest.

Why These Changes Matter

Financial Pressures and Industry Trends

Southwest’s policy overhaul comes in response to growing financial challenges. Rising fuel prices, increased labor costs, and global economic uncertainty have pressured airlines to seek new revenue streams. Ancillary fees—from baggage to seat selection—have become an essential part of the airline business model.

According to airline consultant Mary Kirby, “This change signals a broader trend of low-cost carriers adopting legacy carrier revenue models, focusing more on ancillary fees to boost profitability.” For Southwest, these changes could help stabilize earnings and provide flexibility to invest in service upgrades and fleet improvements.

Moreover, the timing of these changes—just ahead of the busy summer travel season—suggests a strategic move to capture additional revenue from high travel volumes. It also allows Southwest to observe customer reactions and adjust accordingly before the holiday season.

“This change signals a broader trend of low-cost carriers adopting legacy carrier revenue models,” Mary Kirby, Airline Industry Consultant

Customer Reactions and Brand Identity

These updates have sparked mixed reactions among Southwest’s customer base. Long-time loyalists are concerned that the airline is abandoning its original ethos, while others welcome the added structure and options that come with assigned seating and fare tiers.

Consumer advocacy groups have raised concerns about increased travel costs and the potential for confusion during the transition. They emphasize the need for clear communication and transparency to minimize customer dissatisfaction and maintain trust.

Southwest has responded by enhancing its digital platforms to better inform travelers of the new policies. The airline has also increased its customer service capacity to handle questions and complaints as the changes roll out.

Implications for the Broader Airline Industry

Southwest’s shift reflects a broader convergence between low-cost and traditional carriers. As competitive pressures mount and operating costs rise, more airlines may adopt hybrid models that blend affordability with tiered services and fees.

Globally, airlines are re-evaluating their pricing strategies to balance customer expectations with financial sustainability. The success—or failure—of Southwest’s new policies could influence other low-cost carriers to follow suit or double down on their existing models.

Ultimately, the airline industry is moving toward greater segmentation, where travelers pay for exactly what they use. While this can offer more choices, it also places a greater burden on consumers to navigate complex fare structures and hidden fees.

Conclusion

Southwest Airlines’ decision to end its free baggage policy and open seating model marks a significant evolution in its business strategy. These changes align the airline more closely with industry norms and reflect the growing importance of ancillary revenue in maintaining profitability.

While the updates may alienate some loyal customers, they also offer new opportunities for customization and efficiency. The coming months will be critical in determining how well Southwest manages this transition and whether it can maintain its reputation for value and service in a more competitive and complex marketplace.

FAQ

What is the new baggage fee policy at Southwest?
Passengers will pay $35 for the first checked bag and $45 for the second, starting May 28, 2025. Rapid Rewards Credit Card holders receive a credit for one checked bag.

Is Southwest eliminating open seating?
Yes, the airline will begin rolling out assigned and premium seating in late 2025, with full implementation expected in 2026.

What happens to flight credits under the new policy?
Flight credits issued on or after May 28, 2025, will expire after six months or one year, depending on the fare. Credits issued before that date do not expire.

Sources: Associated Press, Southwest Airlines Official Website, U.S. Department of Transportation