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Egg companies made $1.22 billion in profit off a $6 carton — now they’re buying their way out of a price-fixing case with 53 million donated eggs

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FinanceSouthwest Airlines

Southwest Airlines coined the phrase ‘bags fly free.’ Now it’s dropping the 50-year-old perk for everyone except high-status loyalty customers

By
Chris Morris
Chris Morris
Former Contributing Writer
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By
Chris Morris
Chris Morris
Former Contributing Writer
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March 11, 2025, 10:34 AM ET
Southwest Airlines is ending its most popular customer perk.
Southwest Airlines is ending its most popular customer perk. Kevin Carter/Getty Images
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  • Southwest Airlines will begin charging customers for luggage. The change reverses a 50-year policy for the carrier. It is set to begin on May 28, though select customers will be able to avoid the charges.

For more than 50 years, customers who boarded a Southwest Airlines flight knew they were saving at least a little money by not having to pay extra for their luggage. Like so many other perks in the airline industry, however, that policy is about to change.

The carrier is making changes to its “bags fly free” policy as part of a wider shakeup. Any bookings made on or after May 28 will bring baggage charges for all but two kinds of passenger: those in the highest loyalty status, and those who pay for the most expensive tickets. Passengers with the airline’s second-highest level of status, or a Southwest credit card, will be allowed to check one bag for free.

The airline has not said what it will charge other passengers for luggage.

It’s a gigantic shift for Southwest, which less than six months ago described the free-baggage policy as the “moat” that set the airline apart from competitors. (Other airlines have been charging for luggage for years, often pocketing over $1 billion or more in additional revenue from the practice.)

It’s not just luggage policies that are changing. Southwest will also be adding a new fare level, which is essentially the same as basic economy at other carriers. Those tickets will have a number of restrictions and will not allow the passenger to make a seat assignment in advance. Flight credits, which say their expiration dates vanish during the pandemic, will also once again get a shelf life, disappearing if they’re not used.

Southwest has been making changes to its policies for some time now, last year getting rid of open seating and expanding legroom in some seats. The carrier has been under pressure to raise revenues from an activist investor who took a stake in the carrier last year.

About the Author
By Chris MorrisFormer Contributing Writer

Chris Morris is a former contributing writer at Fortune, covering everything from general business news to the video game and theme park industries.

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