Southwest Airlines to overhaul baggage policy and introduce Basic Economy fares from May 28

Southwest Airlines, known for its customer-friendly policies and no-frills approach, is making major changes to its fare structure and service offerings starting May 28, 2025. These updates mark a significant shift from its long-standing principles, particularly the widely appreciated “Bags Fly Free” perk that allowed passengers to check two bags at no extra cost.

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Under the revised policy, only Business Select fare customers and A-List Preferred members will continue enjoying two free checked bags. A-List members and Southwest credit card holders will receive just one free checked bag. All other passengers will now have to pay for their checked luggage, signaling a major departure from the airline’s traditional policy.

In addition, Southwest is set to roll out a new Basic Economy fare tier to better compete with ultra-low-cost carriers. These fares will include certain limitations such as non-refundable tickets, restricted seating options, and limited flexibility for changes. However, passengers will still be able to cancel without penalty—an attempt to retain some flexibility for cost-conscious travelers.

Flight credits are also undergoing a transformation. Previously, Southwest flight credits never expired, offering customers unmatched flexibility. From May 28 onward, flight credits for most fare types will expire one year from the booking date, while credits associated with the Basic Economy tier will lapse within six months.

Changes are also coming to the airline’s Rapid Rewards loyalty program. Point accumulation and redemption will become dynamic, with earnings fluctuating based on fare type and flight demand. Business Select passengers will earn more points, while those booking Wanna Get Away and Wanna Get Away Plus fares will receive fewer.

These changes come amid rising operational costs and intensified competition. Southwest has indicated these adjustments are part of a larger strategy to improve revenue and cut losses. Looking ahead, the airline also plans to introduce assigned seating and new premium benefits in 2026—marking a fundamental shift in how it positions itself within the airline industry.

Passengers can view the full list of changes on the airline’s official policy page.