By admin 
The decision to implement baggage fees was not made in a vacuum. Throughout 2024, Southwest faced intense pressure from activist investors, most notably Elliott Investment Management, who argued that the airline’s idiosyncratic business model—including its open-seating policy and lack of ancillary fee revenue—was contributing to underperformance relative to peers like Delta Air Lines and United Airlines. By mid-2025, Southwest began rolling out a suite of changes designed to modernize its operations and maximize profitability. These changes included the introduction of assigned seating, a premium cabin section with extra legroom, and, most controversially, a tiered baggage fee system. Under the current structure, passengers without specific qualifications must pay $35 for their first checked bag and $45 for their second. For a family of four on a round-trip journey, these costs can easily add $280 or more to the total travel budget, fundamentally changing the value proposition that once made Southwest the undisputed king of domestic budget travel.
Despite these hurdles, there remain several strategic pathways to bypass these costs. The most accessible method for the average traveler involves the airline’s suite of co-branded credit cards. When Southwest revamped its policies, it simultaneously bolstered the value proposition of its Rapid Rewards credit card portfolio, issued by Chase. Recognizing that baggage fees would be a major pain point for its core customer base, Southwest integrated a "free bag" benefit into several of its consumer and business cards. Currently, the Southwest Rapid Rewards Plus Credit Card, the Southwest Rapid Rewards Premier Credit Card, and the Southwest Rapid Rewards Priority Credit Card offer at least one free checked bag for the primary cardmember. Perhaps even more valuable is the "companion" extension of this benefit: many of these cards allow the primary cardholder to extend the free bag perk to up to eight other travelers on the same reservation.
The financial logic of holding a Southwest credit card has shifted dramatically due to these policy changes. For instance, the Southwest Rapid Rewards Plus Credit Card carries a modest $99 annual fee. Previously, this fee was justified by the annual anniversary points and the ability to earn toward a Companion Pass. In the new era, the math is even simpler. If a traveler checks a bag on just three flight segments a year (one round trip and one one-way), they will have paid $105 in baggage fees—more than the cost of the card’s annual fee. For families, the savings are exponential. A single cardholder traveling with a spouse and two children can save $140 in baggage fees on a single one-way flight, meaning the card pays for itself in just one trip. Furthermore, higher-tier cards like the Southwest Rapid Rewards Priority Card, which carries a $229 annual fee, offer additional offsets such as a $75 annual Southwest travel credit and four upgraded boardings per year, making the net cost of the bag benefit almost negligible for frequent flyers.
Beyond credit cards, elite status remains a primary gateway to complimentary luggage. Southwest’s Rapid Rewards loyalty program offers two main tiers of elite status: A-List and A-List Preferred. Following the 2025 overhaul, A-List members are entitled to one free checked bag on every flight, while A-List Preferred members retain the legacy perk of two free checked bags. Earning A-List status typically requires flying 20 qualifying one-way flight segments or earning 35,000 tier-qualifying points in a calendar year. For business travelers who frequently traverse the airline’s extensive domestic network, these milestones are often reached by mid-year, ensuring that baggage costs never become an out-of-pocket expense. Additionally, Southwest has introduced more frequent "status boost" promotions and credit card spend pathways to help mid-tier flyers reach these levels more quickly, acknowledging that maintaining loyalty is critical during a period of such significant structural change.
The airline’s fare classes also play a role in the new baggage economy. While the entry-level "Wanna Get Away" fares are now subject to the standard $35 fee, Southwest has preserved free baggage benefits for its higher-tier tickets. "Wanna Get Away Plus," "Anytime," and "Business Select" fares often include at least one, if not two, free checked bags as part of the bundled price. Travel analysts note that this "unbundling" strategy is designed to drive customers toward these higher-margin fare classes. By making the "Wanna Get Away" fare less inclusive, Southwest encourages travelers to compare the cost of a base fare plus a bag fee against the cost of a "Wanna Get Away Plus" ticket, which also includes benefits like same-day confirmed changes and more Rapid Rewards points per dollar spent. In many cases, the price gap between the tiers is less than the $35 bag fee, making the higher fare class the more logical choice for those who cannot travel with just a carry-on.
It is also important to consider the broader industry context. Even with a $35 fee, Southwest remains competitive with the "Big Three" legacy carriers—American, Delta, and United—who have also raised their baggage fees in recent years, often hovering around the $35 to $40 mark for domestic routes. However, Southwest still holds one significant advantage: its "no change fee" policy remains intact. While other airlines have moved toward more flexible booking since the pandemic, Southwest’s policy is arguably the most robust, allowing travelers to cancel or change flights up to 10 minutes before departure without penalty. When combined with the free bag loopholes via credit cards or status, Southwest still maintains a formidable edge in the domestic market, particularly for travelers who prioritize flexibility and have optimized their loyalty strategy.
Expert perspectives on this transition are mixed. Some industry consultants argue that Southwest risked alienating its "cult-like" following by removing the one feature that most clearly distinguished it from "ultra-low-cost carriers" (ULCCs) like Spirit or Frontier. "Southwest’s brand was built on ‘Transfarency,’" says aviation analyst Michael Boyd. "By adding baggage fees, they are moving toward the middle of the pack. They are no longer the ‘anti-airline’; they are just another airline." Conversely, Wall Street analysts have largely cheered the move. Ancillary revenue—the money made from bags, seats, and food—is incredibly high-margin. For an airline struggling with rising labor costs and Boeing delivery delays, the billions of dollars in projected annual revenue from baggage fees could be the difference between a quarterly loss and a dividend for shareholders.
For the modern traveler, navigating these changes requires a shift in mindset. The "set it and forget it" ease of Southwest travel has been replaced by a need for tactical planning. Travelers are encouraged to ensure their Rapid Rewards numbers are attached to every reservation well in advance, as the baggage benefits tied to credit cards and status are triggered by the loyalty number. Furthermore, Southwest’s mobile app has been updated to provide clear prompts regarding baggage allowances, allowing users to pre-pay for bags at a slightly discounted rate compared to the airport counter, though the best "discount" remains the $0 price point achieved through the aforementioned methods.
As we look toward the remainder of 2026 and beyond, it is clear that Southwest Airlines is in the midst of a profound identity evolution. The airline that once poked fun at its competitors’ "hidden fees" in national television commercials has embraced the reality of modern aviation economics. Yet, by maintaining pathways to free bags for its most loyal customers and cardholders, Southwest is attempting a delicate balancing act: increasing revenue without completely dismantling the goodwill it has spent decades building. For the informed traveler, the "Bags Fly Free" slogan isn’t dead—it’s just become an exclusive benefit for those who know how to play the game. Whether through the strategic use of a $99 credit card, the pursuit of A-List status, or the selection of premium fare classes, the ability to avoid the check-in counter fee remains a viable and valuable goal for millions of Southwest passengers.