Southwest sets its first checked bag fee, starting at $35

After more than five decades, Southwest Airlines is bidding farewell to its iconic “bags fly free” policy. The airline announced on Tuesday that starting tomorrow, passengers will be charged for checked bags. The first checked bag will cost $35, while a second checked bag will cost $45. This new policy will apply to flights booked on or after May 28, so today is the last day to book a flight without incurring these fees.

However, there are exceptions to this new policy. Business Select/Choice Extra and A-List Preferred customers will still receive two free checked bags, and A-List and Chase Rapid Reward credit card members will get one free checked bag. Additionally, weight and size limits for bags will be enforced.

In addition to the checked bag fees, Southwest Airlines is also implementing a new flight credit policy. Flight credits issued on or after May 28 will expire in six months or a year, depending on the fare type. This is a departure from the airline’s previous policy, which stated that flight credits never expire.

The decision to end the free bag check policy was made in response to pressure from activist investors to improve the airline’s financial performance. While Southwest anticipates generating $1.5 billion in revenue from this change, it also expects to lose $1.8 billion in business from loyal customers who were drawn to the airline because of its unique baggage policy.

This checked bag policy change is part of a broader series of changes introduced by Southwest. Last July, the airline announced that it would begin selling assigned seats, a significant shift from its traditional open seating policy. In April, Southwest unveiled its new fare structure, which includes options for customers to pay for extra legroom.

Customers can begin booking flights with the new fare bundles in the third quarter of 2025 for departures in 2026. These changes mark a new era for Southwest Airlines as it adapts to meet the evolving needs and expectations of its passengers.

Mary Cunningham, a reporter for CBS MoneyWatch, contributed to this report. Before joining the business and finance vertical, she worked at “60 Minutes,” CBSNews.com, and CBS News 24/7 as part of the CBS News Associate Program.