AwardWallet receives compensation from advertising partners for links on the blog. The opinions expressed here are our own and have not been reviewed, provided, or approved by any bank advertiser. Here's our complete list of Advertisers.
Nearly a decade ago, Southwest Airlines poured millions into TV ads, billboards, and social media campaigns promoting its commitment to “Transfarency.” Even if you didn’t live near an airport served by Southwest, you might recall the ads boasting no hidden fees, two free checked bags, and transparent pricing.
But those days are over. The webpage that once championed these values now leads to an “Error 404: Page Not Found” — a near-perfect metaphor for the airline’s now-abandoned values. Checked bag fees, basic economy, and dynamic award pricing are officially on the way.
For Southwest loyalists, this might feel like doomsday. But according to the airline’s press release issued on March 11, 2025, it’s just business as usual. Here’s a breakdown of what’s changing with Southwest.
Southwest to Start Charging for Checked Bags, Add Basic Economy, and Implement Dynamic Pricing
Ever since Southwest Airlines began bending the knee to an activist investor, changes have been coming nonstop at the Dallas-based airline — long known for customer-friendly policies, great service, and, yes, “Transfarency.” These values once set it apart from its competition.
But as of March 11, 2025, it’s hard to argue these values still exist. Over the next few months, Southwest will introduce checked bag fees, restrictive basic economy fares, and dynamic award pricing — all coming on the heels of gutting the Rapid Rewards earning rates on its Wanna Get Away fares.
Checked bag fees
Southwest will officially start charging for checked bags for flights booked starting May 28, 2025. Unless you have a Rapid Rewards credit card or elite status, you'll have to pay to check a bag.
The number of bags you can check for free depends on a couple of factors:
- A-List Preferred status holders and Business Select customers can check two bags for free.
- A-List status holders and those with a Southwest credit card can check one bag for free.
But one notable omission from Southwest’s big announcement is just how much those checked bags will actually cost. Again, so much for “Transfarency” — you’ll have to wait and see the damage once these changes roll out.
Basic fares
Continuing the dilution of the Southwest experience, the airline will introduce a new Basic fare starting May 28, 2025. Like other basic economy fares, this ticket will have plenty of restrictions.
Southwest basic fares will be non-refundable (like normal Wanna Get Away fares), and refunds will be issued as travel credits. But unlike Wanna Get Away fares, these travel credits will expire after just six months, six months sooner than those from non-basic fares.
Dynamic award pricing
Southwest already uses dynamic award pricing. As fares increase, so do award rates. However, Southwest seems to want to take this policy even further. As the airline put it, “variable redemption rates across higher-demand and lower-demand flights.”
Southwest dedicated just one sentence in its press release to this rather significant change and left plenty of unanswered questions. But for now, there’s no timeline on when it'll roll out or details on how this shift will impact the number of Rapid Rewards points needed to book an award flight.
Final Thoughts
In September 2024, during its Investor Day, Southwest reiterated its commitment to offering customers two free checked bags. At least then, the airline believed that “any change in the current policy that provides every Customer two free checked bags would drive down demand and far outweigh any revenue gains created by imposing and collecting bag fees.”
Southwest recently even added a Frequently Asked Questions section to its “Customer Enhancements” page with the following:
Is Southwest^® considering changing its Bags fly free^1 policy?
Our Customers love Bags fly free,^1 and we are keeping our industry-leading policy. Every ticket at Southwest comes with two free checked bags.
Southwest has now scrubbed that section — as well as many other references to free checked bags — from its website.
How the tables have turned.
And while there's plenty more to gripe about — basic economy and changes to award pricing — it's pretty clear that Southwest has given up on what made it unique in the first place. And no, we weren’t kidding when we said Southwest removed the definition of “Transfarency” from its website. Those values no longer apply.
If anything, Southwest is quickly becoming more and more like Delta, American, and United. The value proposition of flying Southwest has fundamentally changed — and the lack of transparency and honesty is really just a shot across the bow.
Yes, we’re salty. And yes, we understand that this is a business decision. But nothing about the delivery and implementation of these policies is customer-friendly. And the fact that Southwest is branding these changes as such? It's nothing short of a slap in the face to travelers.
The comments on this page are not provided, reviewed, or otherwise approved by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.
