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How much Southwest, major airlines make on checked bags

March 13, 2025
in Trade Tube
Reading Time: 1 min read
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Southwest is changing its baggage policy after nearly 60 years.

Transcript:

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Caroline Woods: After nearly six decades of service, Southwest Airlines is officially getting rid of something its customers love: free checked bags. The airline announced it will begin charging for the first and second checked bag.

On the decision, Southwest CEO Bob Jordan said, “We have tremendous opportunity to meet current and future customer needs, attract new customer segments we don’t compete for today, and return to the levels of profitability that both we and our shareholders expect.”

Free checked bags have been so synonymous with Southwest that the slogan “bags fly free” became part of its advertising.

Despite the mantra, Southwest brought in $73 million in baggage fees in 2023 according to the Department of Transportation. However, that pales in comparison to other airlines. American Airlines raked in $1.4 billion that same year, with Delta and United each collecting roughly $1 billion.

Southwest’s new baggage fees go into effect on May 28.

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