Back in 2022, Southwest Airlines had one of its worst travel disasters ever. During the holidays, they canceled nearly 17,000 flights & left more than two million people stuck. It was a complete mess. The government ended up fining them $140 million, and the airline has been trying to fix its image ever since.
Things didn’t get easier. Southwest only uses Boeing 737 planes, & when Boeing ran into safety issues and delays, the airline couldn’t get new planes on time. That meant fewer flights & more problems for the company.
Then came Elliott Investment Management, a big-money firm that bought an 11% stake in the airline. They weren’t quiet about their opinions. They said Southwest needed to change fast. So, the airline started updating some of the very policies that made people love it in the first place.
And here’s where the real drama started. Southwest got rid of its famous “Bags Fly Free” rule—the one where you could check two bags for free. For many travelers, that was the main reason they chose Southwest over other airlines. So when the airline announced they were ending it, people were stunned and angry.
Why would Southwest drop something that people actually liked? The answer’s pretty simple: money. Charging for bags brings in a lot of cash. The airline expects to make around $4 billion from two major changes—ending free bags and changing how seating works. Just the Southwest Airlines baggage fee alone could bring in $1.5 billion each year.
Let that sink in—$1.5 billion, just from charging for checked bags. That’s a big deal. The new policy sets bag fees at $35 for your first checked bag and $45 for the second. And if your bag is too big or too heavy, expect to pay even more.
When you think about how many people fly Southwest each year, those fees add up really fast. The airline knows people will complain, but they’ve decided that making all that extra money is worth it. The Southwest Airlines baggage fee is now a major part of their new plan to boost revenue—even if it annoys some longtime customers.
Southwest’s CEO, Bob Jordan, is trying to put a positive spin on the change. He says it’s about giving people more “choice.” In an interview, he said if companies don’t listen to their customers, they fall behind. He claims the fee gives travelers more options.
But let’s be real. The “choice” now is: squeeze everything into your carry-on, rack up enough points to avoid the fees, or pay more for something that used to be free. That’s not a great deal for passengers.
So the big question is this: will the $1.5 billion they expect to make from the Southwest Airlines baggage fee be worth losing the trust of loyal customers? Only time will tell. But right now, it sure feels like Southwest is putting profits over people.