"Bags fly free." The trademarked slogan has appeared in many Southwest Airlines advertising campaigns, but the tagline won't be true come May 28, 2025.
In a surprising announcement at Tuesday's JP Morgan Industrials Conference, Southwest CEO Bob Jordan introduced a series of policy changes that he claimed would present a "tremendous opportunity to meet current and future Customer needs, attract new Customer segments we don’t compete for today, and return to the levels of profitability that both we and our Shareholders expect."
Profitability, that's the key word.
Southwest has been lagging behind many of its competitors, with higher costs and inefficiencies eating into the bottom line. When the activist hedge fund Elliott Investment Management L.P. took a 10% stake in the carrier and gained a significant position on its board, industry watchers realized that major, likely negative, changes were on the way for passengers. Since Elliott took a position in the airline, Southwest has announced the following changes, all major departures from its longstanding policies:
- Checked baggage fees for the first and second bag will now be charged to all passengers, with the exception of customers on Business Select fares.
- Assigned seating will debut at some point in 2026, and fees will apply for seat selection. The carrier's "first come, first served" open seating policy is ending.
- Basic economy fares will earn fewer Rapid Rewards points, cannot be changed, and will see a reduction in flight credit validity (6 months).
New fare products remove benefits previously given to everyone
The changes to Southwest's fare products are outlined in the following chart, which the carrier shared in a press release:
Many of the benefits previously afforded to all passengers will now be limited to passengers purchasing more expensive fares, or those who attain elite status in the airline's frequent flyer program.
The removal of key benefits like free checked bags could make travel on Southwest significantly more expensive for families, and it raises questions about what impact this will have on travelers' choice of airlines.
Accommodations for Wheelchair Users
Southwest Airlines has long been wheelchair users' favorite airline, due in large part to the carrier's open seating policy and the ability for wheelchair users to transfer directly into the front row bulkhead seats.
With those seats set to become preferred extra legroom seats, and seat selection carrying with it a fee, I reached out to inquire if wheelchair users will still retain complimentary access to those seats.
"We are continuing to refine our Customer policies as part of our ongoing transformation work and don’t have specific details to share right now," said Southwest Airlines spokesman Lynn Lunsford. "It is our intention to continue to comply with the law while serving the needs of all our Customers who fly with us now."
While the Air Carrier Access Act (ACAA) requires airlines to make bulkhead seating available to those with fused or immobilized legs (14 CFR 382.81d), that does not cover all persons traveling with their own wheelchair. It remains to be seen whether Southwest will go "above and beyond" the ACAA requirement to accommodate wheelchair users in the future. I am hopeful (but not optimistic) that they will — doing so would require resisting their activist investor's demand to prioritize profit above all else.
John Morris
The Companion Pass is still around
Southwest has eliminated nearly all of the features that made it unique, but one such feature still exists: the Companion Pass. Saved from the cuts for now, the Companion Pass is a perk that permits qualifying passengers to select one person to fly with them free of charge (government-imposed taxes and fees are collected) an unlimited number of times, so long as the sponsoring passenger has purchased their own ticket or redeemed points for a flight.
The companion pass is a perk reserved for the carrier's most frequent flyers and is earned by flying 100 qualifying one-way flights or earning 135,000 qualifying points within a calendar year. Occasionally, Southwest's credit card partners include the pass as part of the sign-up bonus for Southwest cobranded credit cards (which is the case at the time of publishing). Passengers and families with the pass can significantly reduce the cost of traveling, and it's a perk that keeps many travelers loyal to what has long been considered a no-frills airline.
Final Thoughts
Where has the LUV gone? The carrier that has a heart for a logo has implemented a series of unfriendly changes that will lead customers to reevaluate the Southwest value proposition. By joining its competitors in charging pesky fees for seat selection and checked baggage, Southwest has surrendered much of what made it stand out.
In thinking about my own travel patterns, the carrier's elimination of customer-friendly benefits will significantly reduce the likelihood that I fly with, or even consider, Southwest. The truth is, Southwest's competitors now present a more compelling product offering, with free wifi at Delta and JetBlue, seatback entertainment screens at Delta, JetBlue and United and a better selection of snacks at JetBlue. How will these changes impact your relationship with Southwest Airlines?
