Southwest Airlines Ends Free Checked Baggage Policy Amid Investor Pressure

Southwest Airlines has announced it will begin charging for checked luggage, a significant shift from its longstanding 'two bags fly free' policy that has been a hallmark of the airline for decades. The changes, effective for tickets purchased on or after May 28, 2025, will impact most customers, although elite members and credit card holders will still receive some baggage allowances. Industry analysts and loyal customers are expressing disappointment, arguing that this move undermines Southwest's unique brand identity as a low-cost carrier that prioritizes customer service. Some view the decision as a response to pressure from investors, particularly Elliott Investment Management, who is advocating for increased profitability. The airline's stock did rise following the announcement, indicating investor approval, but many fear this strategy could alienate long-time customers and damage loyalty. Overall, this decision marks a pivotal moment for Southwest, potentially transforming it into a conventional airline that resembles its competitors rather than maintaining its distinct position in the market.