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Southwest Airlines ends era of free checked bags as profit pressures mount

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Southwest Airlines ends era of free checked bags as profit pressures mount


Southwest Airlines is ending its long-standing policy of free checked bags and introducing a new basic fare on Wednesday as the carrier aims to attract new customers and boost profitability.

Most passengers will be charged $35 for their first checked bag and $45 for their second checked bag for flights booked and or changed on or after Wednesday, marking a major shift in its customer-friendly pricing model.

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Still, Southwest, considered a “no-frills” carrier, said Rapid Rewards A-List Preferred members and customers traveling on Business Select or Choice Extra fares will receive two free checked bags for up to eight additional passengers traveling on the same reservation. Additionally, A-List Members and Rapid Rewards Credit Cardmembers will get one free checked bag as the carrier aims to encourage more people to join its loyalty program. 

The carrier is simultaneously launching a new basic fare, which will be its cheapest but least flexible fare. 

SOUTHWEST ENDING ITS OPEN SEATING POLICY

Travelers use a Southwest Airlines Co. self-check-in kiosk at Logan International Airport in Boston on Friday, July 19, 2019. ( Scott Eisen/Bloomberg via Getty Images / Getty Images)

CEO Bob Jordan said the changes, announced in March, are part of an effort “to meet current and future customer needs” as well as “attract new customer segments we don’t compete for today.” 

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However, unlike rival carriers, Southwest upheld a policy allowing passengers to check free bags, appealing to a wide range of budget-conscious travelers. The policy, along with open seating, helped the carrier distinguish itself as one of the first to adopt and maintain its low-cost model. However, in recent years, financial challenges have forced the airline to reevaluate its approach. 

SOUTHWEST AIRLINES EXITS MULTIPLE AIRPORTS AS BOEING TROUBLES WEIGH

Southwest Airlines Boeing 737-700 aircraft as seen landing at dusk at Ronald Reagan Washington National Airport. (Getty Images / Getty Images)

To drive more revenue growth, Southwest announced in July that it would begin offering assigned seating and offering premium seating options on all flights – a move designed to boost profits by charging higher rates for premium seats across its entire network. The carrier has maintained a single economy-class cabin with open seating assignments for more than 50 years.

Ticker Security Last Change Change %
LUV SOUTHWEST AIRLINES CO. 32.66 +1.71 +5.53%

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Reservations for flights with assigned seats are expected to start in the second half of 2025 for flights operating in 2026. 

Later this year, the company will change the fare classes as well. In the third quarter of 2025, customers will choose between Choice Extra, which was formerly Business Select, Choice Preferred, formerly Anytime, and Choice, formerly Wanna Get Away Plus. The new fares will also have new seat options: Standard, Preferred and Extra Legroom, which will cost extra. 

Southwest is working to gain more customers and increase revenue while navigating a complex landscape. The carrier withdrew its financial forecast last month because of economic uncertainty stemming from tariffs. It didn’t reaffirm its previous forecast of $1.7 billion in earnings before interest and taxes in 2025 and its outlook of about $3.8 billion in 2026.

Reuters contributed to this report. 



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Dallas, TX

Big picture takeaways from the Dallas Mavericks first week at Summer League

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Big picture takeaways from the Dallas Mavericks first week at Summer League


The Dallas Mavericks, or at least the summer version of themselves, knocked off Cam Boozer and the Memphis Grizzlies on Monday night to win their first game of the Las Vegas Summer League. As the old adage goes, what happens in Vegas stays in Vegas, and that should be true of any grandiose Summer League takes from Dallas’ first three games.

Nonetheless, after attending the Mavericks’ first game in Vegas and loosely watching the last two, there are at least some big picture thoughts that I think could matter as we get closer to the NBA’s regular season.

The rooks have impressed far more than the sophomores

It’s not like Dallas was in a position where they needed a second-year guy to come to Vegas and show that they’re too good for Summer League. Cooper Flagg showed plenty enough last year in route to winning Rookie of the Year to avoid playing in Vegas again. The Mavericks did, however, bring each of their three two-way contract players to Vegas, and the results have been mixed at best.

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Ryan Nembhard was legitimately terrible against the Lakers on Saturday night, with five turnovers complimenting his 3-for-11 night from the floor. John Poulakidas has been fine, albeit the shot has been a bit uninspiring after yet another 1-for-4 showing against Memphis on Monday. And then there’s Tyler Smith, who received a DNP – coaches decision on Monday against the Grizzlies after playing just 28 combined minutes in the first two contests.

Meanwhile, Morez Johnson Jr. had 27 points in game one, Sergio de Larrea just dropped 16 points and 12 assists in the win over Memphis, Tobi Lawal is doing some fun athletic stuff, and Seva Ishchenko has been better than I thought in his three games of action. That juxtaposition leaves Dallas in an interesting spot as they evaluate what the end of the roster will look like.

Morez Johnson Jr., Sergio de Larrea two-man actions should be a bench-group staple

One of the more intriguing things about the first two games was seeing the synergy of the Mavericks two first round selections. In game one against the Warriors, Morez Johnson Jr. and Sergio de Larrea hooked up for a couple of excellent possessions, with Johnson Jr. slipping a screen and de Larrea throwing an excellent pass, resulting in nice finishes at the rim.

As Sergio continued to get increasingly comfortable, you saw the best of him against Memphis. Twelve assists against that Memphis group is quite salty! De Larrea showed off his vision and passing creativity, throwing several pinpoint lobs for dunks. Of course, as the pair learns to scale this into the NBA there will be some challenges. But as an early return, I like the idea of this two-man tandem alongside Cooper Flagg and Kyrie Irving.

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Seva Ishchenko isn’t ready for the NBA… yet

I’m actually more impressed with Ishchenko after the first week in Vegas than I thought! He’s been a pleasant surprise to watch, as he hasn’t been as overwhelmed athletically as many have feared. Granted, it’s been very hit or miss on that, but on the whole, he’s fit in quite nicely.

Another year or two of seasoning for The Big Lebowski would do him very well. The Mavericks should be angling for him to end up in a stronger European league than where he was last year, playing for Lokomotiv in Russia. Ishchenko needs to get stronger, which will help him overcome the issues he’s had finishing at the rim during the first week of Summer League. But there have been glimpses of what the vision there is. Here’s to hoping the Mavs can play the long game here.



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Miami, FL

“We’re going to be champions”. Argentina fans in Miami Beach celebrate team’s win against England

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“We’re going to be champions”. Argentina fans in Miami Beach celebrate team’s win against England



It was a night Argentina fans in South Florida will never forget.

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“It’s going to go crazy, this is unbelievable. We needed it, the country needs this,” said Carlo, a team Argentina fan. 

“Feeling great, we got the cup,” said Joel Decima.

Collins Avenue and 73rd Street were a sea of blue and white as far as the eye could see.

Passionate fans flocked to the streets after Argentina pulled off a win over England, 2-1, sealing their spot in the World Cup final.

“I can’t believe it. It’s still sinking in, and it’s personal. This game is personal,” said Nicole Faria. 

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“Super. Super, happy. So happy. So, so proud of the team,” said Sylvia, an Argentina fan.

“What’s going to happen? We’re going to win. We’re going to be the champions. We will. We will take it,” said Carlo.

On Sunday, July 19, Argentina will take on Spain in New Jersey at 3 p.m. ET to see who takes home the World Cup.



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Atlanta, GA

World Cup isn’t over: Best places to watch the final matches in Atlanta

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World Cup isn’t over: Best places to watch the final matches in Atlanta


FIFA Fan Festival has ended and there are no more World Cup matches in Atlanta, but fans still have plenty of places to catch the final games. Decatur WatchFest, The Battery Atlanta and Cosm are hosting watch parties and immersive viewing experiences for the tournament’s last two matches. Here’s where to watch, when the games kick off and how Atlanta is closing out the FIFA World Cup weekend.



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