Travelers with A-List Preferred status or those purchasing Southwest's most expensive fares will still enjoy the privilege of checking two bags at no cost. Meanwhile, A-List members - those with a lower tier of loyalty - will receive one free checked bag. Customers holding a co-branded Southwest credit card will also benefit from a credit toward one checked bag, cushioning the blow for frequent flyers with financial ties to the airline.
 
Economic pressures and policy reversals
 
This policy shift was foreshadowed in March when Southwest hinted at scrapping its generous luggage allowances in a bid to bolster its earnings. Now, the move is official. More than a cost-saving maneuver, it marks a broader recalibration of the airline's business strategy amid growing economic headwinds.
 
Earlier this year, Southwest withdrew its financial forecast for 2025, citing uncertainties linked to President Donald Trump's ongoing trade war. The airline appears to be shoring up revenue streams as it navigates an increasingly volatile economic landscape. For an airline that once built its brand around customer-friendly policies and transparent pricing, this change is a notable pivot.
 
The Wall Street Journal was the first to break the story on Tuesday. The announcement lands at a time when consumers are already grappling with shrinking benefits and rising costs across the travel industry. For Southwest, the message is clear: the era of freebies is over, and survival may now depend on monetizing every amenity.
 
Southwest eyes global expansion as it tightens the belt at home
 
Earlier this month, the airline has filed a request with U.S. regulators for expanded international flying rights, hinting at ambitions far beyond its current short-haul network. The filing with the Department of Transportation aims to secure the legal groundwork for operating flights to all nations under U.S. open skies agreements - including those in Europe, Latin America, and select parts of Asia and Africa.
 
Though the airline has emphasized that the filing "is not necessarily indicative of anything forthcoming," it comes at a curious moment: one marked by internal restructuring. The move suggests Southwest is keeping its strategic options open as it looks to evolve from a historically domestic carrier to a more global player.
 
The international filing coincides with a broad effort by Southwest to trim fat and recalibrate its business model. In February, the airline cut 15% of its corporate staff, a move that eliminated 11 senior leadership positions and is expected to generate $210 million in savings for 2025 and $300 million in 2026.
 
The airline had already moved away from its signature open seating policy last year, signaling a shift from its traditionally laid-back image toward one more aligned with its competitors.