Southwest Airlines drop free checked bags after 50 years: Here's how much travelers will have to pay
Southwest Airlines is shaking up its travel policies by eliminating free checked bags, a move aimed at boosting revenue. Announced earlier this year, the change brings the carrier's baggage fees in line with major competitors like Delta and American Airlines, marking a shift in strategy for the low-cost operator.
Also Read: Walmart plans to open 5 new stores and one Sam's Club: Check out the new locations
Southwest Airlines has announced it to pull back its free checked bags policy after more than 50 years. On Tuesday, May 27, the airlines revealed that the budget airline will now charge $35 for a customer's first checked bag and $45 for their second checked bag. The policy revocation has left travellers disappointed as the free checked bags differentiated the airlines from their competitors, as reported by mLive.
However, it continues to offer the perks to guests with A-List Preferred status, or those purchasing a Business Select fare still receive two free checked bags. Additionally, travelers holding a Southwest credit card or A-List status in the Rapid Rewards program are entitled to one free checked bag per flight.
Also Read: PlayStation Plus June 2025 games announced early by Sony: See the full lineup
According to the Associated Press reports, the company has estimated that the service charge will earn them a revenue of $1.5 billion annually. However, the airlines also noted that it will also face a loss of $1.8 billion in business as customers opt other airlines after the change in policy.
The budget airline is set to make even further changes as it will soon begin to assign seats. It means that the open boarding system, which was in place for more than 50 years, will also cease to exist. There has been no announcement as to when the switch will happen.
Southwest's Rapid Rewards program is also getting an overhaul, with enhanced perks for travelers who purchase Business Select fares or hold higher-tier status. Meanwhile, members buying lower-cost tickets will see a reduction in the number of rewards points they earn.
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Business Standard
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- Business Standard
Obscure tax item in Trump bill sparks concern across Wall Street circles
By Ye Xie and Liz Capo McCormick Buried deep in the more than 1,000-page tax-and-spending bill that President Donald Trump is muscling through Congress is an obscure tax measure that's setting off alarms on Wall Street and beyond. The item — introduced in legislation that passed the House last week as Section 899 and titled 'Enforcement of Remedies Against Unfair Foreign Taxes' — calls for, among other things, increasing tax rates for individuals and companies from countries whose tax policies the US deems 'discriminatory.' This includes raising tax rates on passive income, such as interest and dividends, earned by investors who are potentially sitting on trillions in American assets. 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The S&P 500 is up about 0.4 per cent this year, compared with a 20 per cent gain in the German benchmark and a 18 per cent rally in Hong Kong. The Bloomberg Dollar Index slumped about 7 per cent. The US Treasuries returned 2 per cent, trailing the 5 per cent gain in the global government bonds in dollar terms, according to data compiled by Bloomberg. Under the Surface While some are skeptical if the Section 899 would survive on concern it would dampen foreign investment into the US, Signum Global Advisors predicts it will likely remain in the final version of the reconciliation package, in part because it has broad Republican support. 'We believe the president's viewpoint is that there is such immense foreign appetite to invest in the US that it is not at risk of being thrown off course,' according to Charles Myers, a former Wall Street executive who runs advisory firm Signum, and Lew Lukens, a partner at the firm. 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Southwest Airlines drop free checked bags after 50 years: Here's how much travelers will have to pay
Southwest Airlines is shaking up its travel policies by eliminating free checked bags, a move aimed at boosting revenue. Announced earlier this year, the change brings the carrier's baggage fees in line with major competitors like Delta and American Airlines, marking a shift in strategy for the low-cost operator. Also Read: Walmart plans to open 5 new stores and one Sam's Club: Check out the new locations Southwest Airlines has announced it to pull back its free checked bags policy after more than 50 years. On Tuesday, May 27, the airlines revealed that the budget airline will now charge $35 for a customer's first checked bag and $45 for their second checked bag. The policy revocation has left travellers disappointed as the free checked bags differentiated the airlines from their competitors, as reported by mLive. However, it continues to offer the perks to guests with A-List Preferred status, or those purchasing a Business Select fare still receive two free checked bags. Additionally, travelers holding a Southwest credit card or A-List status in the Rapid Rewards program are entitled to one free checked bag per flight. Also Read: PlayStation Plus June 2025 games announced early by Sony: See the full lineup According to the Associated Press reports, the company has estimated that the service charge will earn them a revenue of $1.5 billion annually. However, the airlines also noted that it will also face a loss of $1.8 billion in business as customers opt other airlines after the change in policy. The budget airline is set to make even further changes as it will soon begin to assign seats. It means that the open boarding system, which was in place for more than 50 years, will also cease to exist. There has been no announcement as to when the switch will happen. Southwest's Rapid Rewards program is also getting an overhaul, with enhanced perks for travelers who purchase Business Select fares or hold higher-tier status. Meanwhile, members buying lower-cost tickets will see a reduction in the number of rewards points they earn.
