After decades of touting two free checked bags and a first-come, first-served boarding ritual, Southwest Airlines is rewriting its in-flight playbook. The carrier’s chief executive, Bob Jordan, defended the moves in a recent interview with The New York Times, describing the new fees, fare classes, and seat assignments as added “choice” for travelers. Yet many long-time customers view the overhaul as a slide toward the same à la carte pricing they once escaped by booking Southwest.
From no-fee pioneer to à la carte menu
Southwest labels new fees as choice, but the most eye-catching change upends a cornerstone of the airline’s identity: free checked luggage. Starting later this year, only Business Select customers—and certain elite or co-branded credit-card holders—will enjoy the legacy perk. Everyone else will pay $35 for the first checked bag and $45 for the second, mirroring rates at the Big Three U.S. carriers.
Jordan framed the shift as customer-driven. “Customers today want a lot of choice,” he told the newspaper, as Jordan explained to the New York Times. He argued that travelers increasingly prefer a lower base fare, along with the option to add extras.
Four fare tiers, one free-bag tier
To support the strategy, Southwest now sells four branded fares:
- Basic – the lowest price, the most rules, and no free checked bags.
- Wanna Get Away Plus – added rebooking flexibility,y but still no checked-bag allowance.
- Anytime – refundable with same-day changes, yet bags still cost extra.
- Business Select – priority boarding, refundable tickets, and two free checked bags.
Upgrading from Basic to Business Select routinely costs $100 or more on popular routes, a figure that outstrips the price of checking one or even two bags. Travelers banking on “choice” should compare bag fees against the fare-jump premium before deciding.
Premium seats and an end to open seating
In an equally dramatic pivot, Southwest will abandon its open-seating tradition in 2026. Assigned seating—complete with a new first-class or premium-economy cabin—will debut fleet-wide, according to investor-day slides shared last fall. The airline has not disclosed seat dimensions or pricing, but executives hint that extra-legroom rows will serve as rewards for top-tier Rapid Rewards members and, of course, another ancillary revenue stream.
Jordan said the move should also ease in-flight tension. “If in the open-seating world a family gets on and they can’t sit together, the flight attendant is having to police that,” he noted, as Jordan told the New York Times.
Why the shift matters for travelers
• Peace of mind. Families that previously paid for EarlyBird Check-In—or hovered over the Southwest app 24 hours in advance—will soon pick seats at booking.
• Potential fees. Expect a sliding scale: standard seats may remain free, while extra-legroom or bulkhead spots could mimic Delta’s Comfort+ or United’s Economy Plus surcharges.
• Status value. If Southwest mirrors rivals, A-List Preferred elites might select premium economy at no extra charge, adding incentive to chase status.
What it means for budget flyers
Southwest labels new fees asa choice again when it insists the Basic fare will preserve the brand’s low-cost DNA. The airline promises that its rock-bottom option will still be competitively priced with Spirit or Frontier once customers factor in bags and seat assignments. Skeptics counter that passengers who once booked Southwest to avoid nickel-and-diming may compare full trip costs and defect.
For travelers who rarely check bags and don’t crave extra legroom, the Basic fare could remain a deal, especially on shorter routes where overhead-bin space is plentiful. Those who rely on checked luggage, however, must decide between paying baggage fees or upgrading to a higher tier.
Loyalty math: When status pays off
Southwest’s Rapid Rewards program now functions more like the competition. Perks once given to every passenger—such as bags and no-change fees—now shift toward elite status or co-branded credit card possession. A-List Preferred members will still receive two free checked bags, while A-List and Rapid Rewards cardholders get one.
Frequent fliers who log enough trips to earn 35,000 qualifying points (A-List) or 70,000 (A-List Preferred) may easily offset the new bag fees. Occasional leisure travelers have less wiggle room.
Investor pressure or market reality?
Some analysts connect the timing of these changes to Elliott Investment Management, a hedge fund that amassed a nearly $2 billion stake in Southwest last year and publicly questioned the airline’s strategy. Jordan downplayed the narrative, saying the assigned-seating plan “was well underway, way ahead of Elliott,”—as Jordan told the New York Times.
Regardless of motive, the policy overhaul aligns Southwest with industry norms that generate billions in ancillary revenue. According to IdeaWorksCompany, U.S. carriers collected more than $5 billion in bag fees alone last year. Even a modest slice of that pie could buoy Southwest’s balance sheet as aircraft delivery delays and labor costs rise.
Takeaways for JetsetterGuide readers
1. Compare total trip cost. When shopping fares, add Southwest’s new bag charges to the advertised price. On a family vacation with multiple checked bags, a classic main-cabin fare on American or Delta might suddenly look competitive.
2. Leverage credit-card perks early. If you already hold a Southwest Rapid Rewards Visa, make sure the card number is in your reservation profile so the complimentary bag shows up automatically at check-in.
3. Watch the rollout calendar. Bag fees take effect later this year; assigned seating arrives in 2026. Booking far ahead? Confirm whether your flight will still follow the open-seating system.
4. Re-evaluate elite status goals. If you’re on the cusp of A-List status, two more round-trips might save hundreds in bag fees next year. If you fly Southwest only once a year, status chasing probably makes little sense.
5. Mind the carry-on backlog. As more passengers avoid bag fees by stuffing the overhead bins, expect boarding congestion. Plan to board early—or at least be prepared to gate-check a bag—on full flights.
Southwest’s coming changes
When will bag fees start? Southwest has not announced an exact launch date, but the policy is scheduled for late 2024, pending DOT filings.
How much will premium seats cost? Pricing details remain under wraps. Historically, U.S. airlines charge between $20 and $199 each way for domestic extra-legroom seats.
Will Companion Pass holders keep their benefits? Yes. The pass still allows eligible travelers to bring a designated companion for only taxes and fees; however, any checked-bag fees would apply to both tickets unless one traveler has status or a Southwest credit card.
Can I still change or cancel a ticket for free? The longstanding no-change-fee policy survives—at least for now. Flyer flexibility remains a key differentiator for Southwest.
Bottom line
Southwest Airlines is banking on passengers embracing a buffet of add-ons rather than bolting to competitors. Whether you view the new direction as empowering or opportunistic, an era of automatic freebies on Southwest is drawing to a close. Travelers who plan, compare, and strategize can still score value, but spontaneity will cost more than it did in the past.
