Southwest Airlines Ends Free Bags, Introduces Basic Fare, and Reshapes Loyalty Program

Southwest Airlines is making some of the biggest changes in its history, shaking up key policies that have long set it apart from the competition. The Dallas-based airline announced today that it will start charging most passengers for checked bags, introduce a new “basic” fare, and adjust its Rapid Rewards loyalty program with more dynamic pricing.

These updates represent a major shift from Southwest’s long-standing, customer-friendly approach. The airline has always championed its “bags fly free” policy and resisted adopting basic economy fares or revenue-based loyalty redemptions. But now, with mounting financial pressure and a push for profitability, Southwest is making a series of moves that will bring it more in line with other major U.S. carriers.

Most of these changes take effect for flights booked on or after May 28, 2025 — meaning travelers still have a short window to lock in flights under the current, more generous policies.

Here’s what you should know about these changes and how they may impact your upcoming flights.

Free Bags No More: Southwest Introduces Checked Baggage Fees

For years, Southwest has touted its 2 free checked bags as a major selling point. That perk, however, is coming to an end — unless you hold elite status, book the most expensive fares, or have a Southwest co-branded credit card.

These changes were announced by the carrier in a press release today, March 11, though the announcement didn’t say what the checked bag fees would be.

Who Still Gets Free Checked Bags?

• A-List Preferred members and Business Select ticket holders will continue to receive 2 free checked bags.
• A-List elite members and Southwest credit card holders will get 1 free checked bag.
• Everyone else will have to pay for checked baggage, though Southwest has yet to release exact pricing.

This move brings Southwest in line with other major U.S. airlines that charge for checked luggage, though it also marks a dramatic departure from one of its biggest competitive advantages.

Basic Economy Is Coming to Southwest Airlines

Southwest has long resisted adding a basic economy fare, but that, too, is changing. The airline will introduce a new low-cost “Basic” fare starting May 28, 2025. While Southwest hasn’t yet shared all the details, it’s likely that these fares will come with significant restrictions—potentially impacting seat selection, boarding position, or even carry-on allowances.

This new fare tier is aimed at attracting price-sensitive travelers who currently opt for ultra-low-cost carriers like Spirit and Frontier. However, it also means Southwest’s cheapest tickets may soon come with additional trade-offs that weren’t previously part of the airline’s model.

Another negative aspect of the Basic fares? An earlier end to flight credits. If you cancel a Southwest Airlines flight and receive a voucher to use on another flight in the future, that credit expires 1 year from when the ticket expires — except for Basic fares, which will see credits expire 6 months after the ticketing date. Previously, none of Southwest’s vouchers expired.

Rapid Rewards Undergoing More Changes, Including Dynamic Award Pricing

Southwest is also tweaking its Rapid Rewards loyalty program, making several adjustments that could impact both earning and redeeming points.

Fewer Points on Budget Fares, More on Expensive Ones

The airline recently reduced the number of points earned on Wanna Get Away and Wanna Get Away Plus fares while increasing points earnings on Business Select fares.

Variable Award Pricing Is on the Way

Southwest also announced that it will introduce more dynamic pricing for Rapid Rewards redemptions. This means that award tickets will fluctuate in price based on demand, similar to how other airlines operate. Historically, these kinds of changes tend to make it harder for travelers to find good redemption deals, especially on high-demand flights.

For loyal Southwest flyers, this is a clear devaluation — one that makes it even more important to use points wisely before prices increase.

More Big Southwest Changes: Assigned Seating and Extra Legroom Seats

Beyond the new fees and fare structures, Southwest is already in the process of making additional major changes to its business model.

The End of Open Seating

Southwest has long been famous (or infamous) for its open seating policy, in which passengers board in order of the number assigned to them at check-in and pick any available seat. This policy will soon come to an end. The airline is transitioning to assigned seating — a move that aligns it more closely with other major carriers.

Seats With Extra Legroom Are Coming

Another new feature will be extra legroom seating, which will be available for an added cost. While Southwest hasn’t detailed how these seats will be sold, travelers may need to pay a premium — or book a higher fare class — to get the extra space. We potentially could see these seats included as a perk on Southwest’s credit cards, but that remains to be seen.

For frequent Southwest flyers who have mastered the art of securing a prime seat through early check-in or boarding position, these changes will dramatically alter the flying experience.

Final Thoughts

Southwest’s latest announcements signal a fundamental shift for the airline. The end of its free checked bag policy, the introduction of basic fares, and the shift toward dynamic award pricing all indicate that the airline is prioritizing revenue growth over maintaining what has set it apart from competitors — and endeared it to customers — over the years.

While some travelers may welcome the lower-cost basic fare option, others will see these changes as a departure from the airline’s customer-friendly reputation. And with assigned seating and extra legroom seats on the horizon, Southwest is looking more like its competitors than ever before.

If you still want to take advantage of Southwest’s current policies — especially free checked bags and predictable award pricing — booking before May 28, 2025, is your best bet.