Southwest’s Overhaul: New Bag Fees, Seating Changes – What's at Stake

Southwest’s most iconic perk ends Tuesday. While Southwest has received flak from customers, executives hope bag fees will shore up profitability.

A beloved perk among Southwest customers is coming to an end on Wednesday: No more free checked bags.

Soon, it will cost customers $35 for a first checked-in bag and $45 for the second.

Southwest made the monumental decision to charge bag fees in March following a series of other major changes to its business model. Bag fees had long been one of Southwest’s biggest differentiators from other airlines, and executives at the company had stressed that the policy was beneficial to Southwest’s bottom line.

“We're not looking at this point to change that policy," Southwest CEO Bob Jordan said during an earnings call last July. "Our industry-leading set of initiatives of customer-friendly policies, and you know the list, is a big part of what attracts people to Southwest Airlines. And after fare and sc