In a nutshell
The change follows a previous move to do away with another signature Southwest policy for open seating, as previously reported by Community Impact.
“It's about securing our future. We're announcing changes to our business that will help us return to the levels of profitability we all expect and to support our collective long term success,” Bob Jordan, CEO and vice chairman of the board of directors at Southwest Airlines, said in a statement.
However, the decision will not impact reward members.
Southwest will continue to offer two free checked bags for its Rapid Rewards members. Additionally, reward members will receive more frequent flier points on Business Select fares while earning less on Wanna Get Away fares.
While the move is intended to deepen and reward the airline's “most loyal customers,” the carrier will also be rolling out a new “Basic” fare—its lowest priced ticket before add-ons like assigned seating or extra leg room.
In the news
United Airlines CEO Scott Kirby said at a March 11 J.P. Morgan 2025 Industries Conference that the baggage policy overhaul would primarily affect budget travelers, noting that the changes would boost Southwest’s profits while leveling the playing field across airlines.
“It's the slaying of a sacred cow,” Kirby said. “It's one of the two big things that gets Southwest back up to industry leading margins—that and stop flying to places that lose money.”
He said the decision reflects an airline that is more financially focused and results-driven than ever before. Five-year stock trends highlight some of the lowest post-pandemic trading values.
The local impact
More than half a million passengers fly Southwest at the Austin-Bergstrom International Airport each month, according to airport data.
“Our DNA isn't 'open seating' or even 'bags fly free.' It's a dedication to service and hospitality, and to the golden rule for each other and for our customers. It's our commitment to customer service that is in a class of its own,” Jordan said.
