Southwest Ditches Free Bags, Adds Basic Fares

Bags will no longer fly free on Southwest Airlines. On March 11, 2025, the airline announced several upcoming negative changes, including the addition of checked bag fees, variable redemption rates for award flights, flight credit expiration and a new basic economy fare class. This news comes after a quiet devaluation of the Rapid Rewards program the week prior.

As someone who has flown Southwest hundreds of times, I can tell you this is huge news — and it's going to have a big impact on when people choose to fly on the airline.

The following changes will apply to all Southwest flights booked on or after May 28, 2025:

A new checked bag policy:

• A-List Preferred members and travelers on a Business Select fare will still get two free checked bags.

• A-List members will receive one free checked bag.

• Rapid Rewards credit cardholders will get one free checked bag.

• All other customers will pay for their first and second checked bags.

Introduction of basic economy fares:

• A new Basic fare will be introduced for the lowest-priced tickets, replacing Wanna Get Away fares. This change comes ahead of plans to charge for assigned seating and extra legroom.

Rapid Rewards program changes:

• Redemption rates will vary depending on demand, with higher-demand flights costing more points. In effect, the airline is introducing dynamic pricing to award flights. 

• As announced last week, Business Select fares will earn more points, but Basic and Wanna Get Away Plus fares will earn fewer points.

Flight credits will now expire:

• Flight credits will expire within one year of being issued (or six months after issue for Basic fares), or sooner, depending on the fare type. Currently, flight credits have no expiration date.

» Learn more: Southwest Airlines fare classes: What you need to know

Southwest has become just another budget airline

For years, Southwest set itself apart from those low-fare competitors by offering free checked bags and flexible change and cancellation policies. But the new changes, particularly to the cheapest fares, solidify Southwest Airlines as a budget carrier similar to Allegiant Airlines and Spirit Airlines.

Southwest lacks the route network of the biggest domestic carriers in the U.S. The airline doesn’t have traditional hub airports, and while it serves a few bigger markets like Houston and Chicago, its lack of presence in major markets has always limited passenger loyalty. Passengers often fly on Southwest when it's the cheapest option, not because it's the only choice. But for many, it will no longer be the cheapest.

» Learn more: When to fly on low-cost carriers vs. full-service airlines

Personally, these changes mean I will never seek out a Southwest flight and will only travel with them when it’s the only option.

This announcement leaves many questions unanswered. We still don’t know what impact these changes will have on Southwest's famous Companion Pass or what the cost of checking a bag will be. NerdWallet has contacted Southwest for comment but has not yet received a response.