In another move to stick it to potential airline passengers, Southwest Airlines has joined the ever-growing list of airlines charging for checked baggage. The cattle-call herding airline is quickly losing its appeal over other carriers who at least don’t make you fight other passengers to find an available seat. There’s no word if they’ll cease overbooking flights.
Elliott Investment Management Strikes Again
So why the sudden shift from promoting “Bags Fly Free”, to screwing loyal customers over? That’s an easy one named “Elliott Investment Management“.
Elliott Investment Management is an “activist” shareholder who bought a $1.9 BILLION stake in Southwest Airlines in June 2024.
Anyone familiar with Elliott’s body of work can tell you that they’re vultures, seeking out seemingly dying companies and sucking out what little life they may have left (aka “extracting value” for shareholders).
A recent such example would be their 2015 stake in Cabela’s which ended up forcing a sale to Bass Pro Shops in 2017 in order to line Cabela’s shareholders’ pockets.
Occasionally, Elliott does manage to turn a company around, but if they can’t manage to do it fairly quickly, you better watch out, things will likely be going from bad to worse. TBD if Southwest Airlines is still around five years from now spreading the “LUV”.
Via Bob Jordan, President, CEO, & Vice Chairman of the Board of Southwest Airlines:
Today we announced updates to some of our policies and benefits within our fare bundles. Sharing them with you is important to us, as we’re working to offer you more choices to create travel experiences that fit your needs.
Updates to Checked Baggage Policy
We will offer two free checked bags to Rapid Rewards® A-List Preferred Members and Customers traveling on Business Select fares. We will also offer one free checked bag to A-List Members and other select Customers. In addition, Southwest will credit one checked bag for Rapid Rewards Credit Cardmembers. All remaining Customers will pay to check their first and second bags, and we will continue to charge for the third and fourth checked bags. Changes will apply to flights booked on or after May 28.
Updates to Our Fare Bundles
We’re updating the benefits of our fares bundles in phases. Whether you’re looking for a lower price with fewer perks, or more benefits for added flexibility, you’ll have the choice to pick what works best for your trip.
Phase 1: Beginning this month, we increased our Rapid Rewards earn ratio on our Business Select fares and lowered the earn ratio on our Wanna Get Away® and Wanna Get Away Plus™ fares. We will also begin to vary our redemption rates across our fare products on some high- and low-demand travel periods.
Phase 2: Beginning May 28, we will introduce a new Basic fare. This new Basic fare will be our lowest price point and will have less flexibility than other fares. Additionally, we will be adding expiration dates to our Flight Credits, which will vary based on which fare you choose to purchase.
The chart below gives you a full picture of the revised fare products as of May 28, 2025, ranging from most flexible to value-first.
The Fine Print
Terms and Conditions:
1 Basic Fare
Basic fares are nonrefundable and non-changeable except as allowed by our 24 hour cancellation policy. Customers may be eligible for a flight credit if canceled at least 10 minutes prior to the flight’s original departure time.
2 Checked bag
Effective May 28, 2025, bag fees will apply to Basic, Wanna Get Away Plus® and Anytime fares traveling on or after May 28, 2025. Business Select® will continue to receive to two free checked bags. Weight and size limits apply. A golf bag or skis in a container acceptable to Southwest® can be substituted for one checked bag.
3 Rapid Rewards points
Points can be earned from (a) Qualifying Flights (defined below) operated by Southwest, or (b) through qualifying purchases with our Rapid Rewards partners. For flights completed on or before 2:59 AM Central Standard Time (“CST”) on 1/1/25, “Qualifying Flights” include flights operated by Southwest Airlines® and paid entirely with dollars, Southwest LUV Vouchers®, gift cards, or flight credits and with no portion of the purchase price paid with Rapid Rewards points or Rapid Rewards Business points. For flights completed on or after 3:00 AM CST on 1/1/25, “Qualifying Flights” include flights operated by Southwest Airlines® and paid entirely with dollars, Southwest LUV Vouchers, gift cards, or flight credits and those paid with Cash + Points. NOTE: With a Cash + Points booking, points are earned only on the portion of the base fare that is paid with dollars. Qualifying Flights exclude reward flights, charter flights, nonrevenue travel, and Companion Pass® travel. All Rapid Rewards rules and regulations apply and can be found at Southwest.com/rrterms.
4 Flight Credits
Flight credits will be issued as long as the flight is canceled at least 10 minutes prior to the scheduled departure. For travel booked with Rapid Rewards points for Basic or Wanna Get Away Plus® reward travel reservations if you do not cancel your reservation at least 10 minutes before the flight’s original scheduled departure time, any points used for booking will be forfeited, along with any taxes and fees associated with your reward travel reservation.
5 Transferable Flight Credit
Effective May 28, 2025, a Transferable Flight Credit™ will be issued as long as the flight is canceled at least 10 minutes prior to the scheduled departure. Transferable Flight Credits can be transferred between Rapid Rewards® Members. Only one transfer is permitted. Transferable Flight Credits expire based on fare type. For travel booked with Rapid Rewards points for Basic or Wanna Get Away Plus™ reward travel reservations, if you do not cancel your reservation at least 10 minutes before the flight’s original scheduled departure time, any points used for booking will be forfeited, along with any taxes and fees associated with your reward travel reservation. For bookings made through a Southwest® Business channel, transfers are allowed only between employees within the organization.
6 Refundable
As long as you cancel your reservation at least ten (10) minutes prior to the scheduled departure of your flight, if you cancel, you’re eligible to receive 100% of your ticket value as a refund to your original form of payment. A Southwest flight credit from a previous reservation that is applied toward a Business Select or Anytime fare will be refunded as a Transferable Flight Credit. For travel booked with Rapid Rewards points, if canceled, points will be returned to the Rapid Rewards account holder who booked the ticket. For Anytime or Business Select® reward travel reservations: the points used for booking will be redeposited to the purchaser’s Rapid Rewards® account, and any taxes and fees associated with the reward travel reservation will be converted into a Transferable Flight Credit for future use.
7 Changes
If you need to change an upcoming flight itinerary, you’ll only pay the difference in fare for Wanna Get Away Plus®, Anytime and Business Select fares (if one applies). Failure to cancel a reservation at least 10 minutes prior to scheduled departure may result in forfeited travel funds.
8 Cancellations
All fares types are eligible for cancelations without a fee. For changes to a flight itinerary with Wanna Get Away Plus®, Anytime, and Business Select®, there is no fee, though a fare difference may apply. Failure to cancel a reservation at least 10 minutes prior to scheduled departure may result in forfeited travel funds.
9 Free same-day change/standby
Same-day change: On the day of travel, you can switch free of airline charges to another flight with space available departing on the same calendar day between the same origin airport and destination airport as your original flight.
Same-day standby: You can list for same-day standby on an earlier flight via a Southwest Customer Service Agent at the airport or the Southwest app or mobile web. You will receive a message based on the contact preference selected during booking if you are cleared on the flight.
For both same-day change and same-day standby, you must change your flight or request to be added to the same-day standby list at least 10 minutes prior to the scheduled departure of your original flight or the no-show policy will apply. If using the app or mobile web for standby, you must list your name 30 minutes ahead of scheduled departure. You will be required to pay any government taxes and fees associated with these itinerary changes but refunds will be provided. Your original boarding position is not guaranteed. Southwest Business Customers booked through travel agencies may need to see a Southwest Agent at the airport for both a same-day change or standby listing. See southwest.com/standby for more details.
10 EarlyBird Check-In®
You will automatically be checked in to your flight 36 hours prior to scheduled departure. For Anytime fares purchased between 36 and 24 hours, the boarding position assignment process has begun so this may impact the boarding position assigned to you. If you purchase an Anytime fare within 24 hours of your flight’s scheduled departure, you will not receive the EarlyBird Check-In benefit. In an irregular operation situation, the boarding position is not guaranteed.
11 Free Inflight entertainment
Texting only allows access to iMessage and WhatsApp (which must be downloaded and activated before connecting to Southwest WiFi).
12 Priority and Express Lanes
Priority and Express Lanes, (where available), can be accessed by Business Select and Anytime Customers and A-List and A-List Preferred Members. Priority Lanes are at Southwest check-in counters, and Express Lanes are at security checkpoints.
13 Complimentary premium drink
On select flights traveling 251 miles or more, Business Select travelers receive one complimentary premium drink on the day of travel and A-List Preferred Members receive up to two complimentary premium drinks per leg. Drink coupons are subject to availability. Service may also be limited at Southwest’s discretion. This coupon has no cash value. Drink coupon is void if altered, sold, purchased, brokered, or bartered. Non-exchangeable for other goods or services. Southwest Airlines® reserves the right to discontinue its drink coupon program at any time. Coupon is invalid after expiration date and will not be updated or replaced. Alcohol purchased with drink coupons must be consumed onboard the aircraft.
14 Free Inflight Internet
Where available. Available only on WiFi-enabled aircraft. Limited-time offer.
SOURCE: Southwest Airlines Co.
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