Southwest Airlines has decided to charge passengers for checked bags for the first time in its more than 50-year history. This airline used to provide free baggage allowance to passengers, which made it different from its competitors. But now the company is adopting a new strategy to increase its revenue. The airline has been under constant pressure from an investment firm called Elite Investment Management to change its business model and focus on making more profits. Last year, American Airlines earned $5.5 billion from baggage fees, proving that it is a significant source of revenue. When will this new rule take effect? ​​The baggage fee will apply to tickets purchased on or after May 28, 2025. However, some passengers are exempt:

A-List Preferred members: can check two bags for free.

A-List members: can check one bag for free.

Southwest Credit Cardholders: Can Check One Bag for Free.
Company Officials Statement
Southwest Airlines CEO Bob Jordan previously said that free bag service is a big reason travelers choose their airline. But now, he says, “we need more revenue to cover our expenses.”
A new basic economy ticket will also be launched
Southwest Airlines is also introducing a new fare option for its customers called the basic economy ticket. This ticket will be available at a lower price but will provide limited amenities.
Other key changes:
Changes to the frequent flyer miles system: Travelers will now receive more reward points based on their spending.
Flight credit expiration: For tickets purchased after May 28, the credit expiration will depend on the fare type and can expire within a year.
Premium seating options: Southwest will also now introduce seats with “premium legroom,” giving travelers a more comfortable travel option.
Route and crew reductions: The airline is reducing some routes and crew numbers to reduce its losses.