Southwest Restricts Free Bags, Launches Basic Fare

Southwest Airlines is ending its universal free checked bag policy, with only Rapid Rewards Credit Cardmembers continuing to receive one free checked bag, while most customers will now be charged. The airline is also introducing a new Basic fare with additional restrictions and replacing its popular 'Wanna Get Away' fares. Travel credits issued after May 28, 2025, will expire after 12 months for standard fares and six months for Basic fares, ending the previous policy of non-expiring credits. These moves come amid substantial financial pressures, including a $231 million net loss in Q1 2024, penalties from prior mass cancellations, and ongoing difficulties with Boeing 737 Max deliveries. Southwest is also laying off 15% of its corporate workforce. The changes have sparked significant customer backlash and concerns about the airline's future competitiveness.