The End of an Era: Southwest Airlines Introduces Bag Fees, But a New Points Promotion Offers a Silver Lining

For Immediate Release

DALLAS, TX – June 22, 2025 – For decades, it was the marketing mantra that defined a beloved American airline: "Bags Fly Free." That simple promise from Southwest Airlines has officially been grounded. In a landmark shift, Southwest has implemented fees for checked baggage on its lowest fares, a strategic pivot that fundamentally reshapes its value proposition. The new policy, affecting all reservations from May 28, 2025, signals a new, more intricate chapter for the carrier.

However, the airline is also extending a potentially lucrative olive branch. To temper the news, Southwest has unveiled a targeted promotion offering up to 20,000 bonus Rapid Rewards points for summer travel. This creates a new calculus for American travelers: the all-inclusive Southwest of yesterday is gone, replaced by a landscape where strategic planning, elite status, and co-branded credit cards are more crucial than ever.

Deconstructing the New Baggage Policy

The once-unconditional "Bags Fly Free" slogan now carries a significant asterisk. For travelers booking "Basic" and "Wanna Get Away" fares, the following fees now apply for checked luggage:

First Checked Bag: $35
Second Checked Bag: $45

This change most acutely impacts budget-conscious travelers and families. However, not all customers will pay. Southwest has maintained its free baggage allowance for its most loyal customers and premium fare buyers. According to Southwest Airlines, the following passengers will continue to enjoy complimentary checked bags [Southwest Airlines' official baggage policy page]:

Two Free Checked Bags: Business Select customers and A-List Preferred Members.
One Free Checked Bag: A-List Members and primary holders of Southwest Rapid Rewards® Credit Cards from Chase.

To illustrate, a family of four with one checked bag each would previously have paid $0. Under the new system, without status or a qualifying credit card, that same family faces a hefty $280 in baggage fees for a round-trip journey. This kind of change underscores the importance of understanding how loyalty programs are evolving across the industry.

A Summer of Opportunity: The 20,000 Bonus Points Promotion

To soften the blow, Southwest has launched a targeted promotion for Rapid Rewards members. Eligible travelers who register can earn substantial bonus points for flights between June 11 and August 31, 2025. The promotion is tiered, as detailed on the airline's promotional page [official promotion registration page]:

Fly 1 round trip (or 2 one-ways): Earn 5,000 bonus points.
Fly 2 round trips (or 4 one-ways): Earn an additional 5,000 bonus points (10,000 total).
Fly 3 round trips (or 6 one-ways): Earn another 10,000 bonus points (20,000 total).

Significantly, these bonus points count toward qualifying for the coveted Southwest Companion Pass®, though they do not contribute to A-List or A-List Preferred status.

A Financial Advisor's Perspective: The New Value Equation

This is a calculated trade-off. Southwest is betting the revenue from bag fees will outweigh any customer attrition. For travelers, the equation for value has changed, similar to shifts seen in the broader credit card rewards landscape.

Revisiting the family of four, the new $280 fee is a substantial cost. However, if one parent holds a Southwest Rapid Rewards® Priority Credit Card, the first checked bag for them and up to eight companions on the same booking is free. This single benefit negates the fee, making the card's $149 annual fee an immediate money-saver. When combined with the summer promotion, that family earns 5,000 bonus points (worth ~$65-$75), turning a new cost into a net gain.

For a solo traveler, the math is even more direct. A single round trip would incur $70 in bag fees. The 5,000-point bonus, worth roughly the same, effectively cancels out this new cost. For those who already get free bags via status or a credit card, this promotion is pure upside, much like the simple bonuses in other programs like the Hilton "Points Plus" promo.

Navigating Other Key Updates

The introduction of baggage fees is part of a broader evolution. Travelers should note these other changes:

New Fare Structure: A restrictive "Basic" fare debuted on May 28. Other fares will be rebranded later this year. More details can be found on Southwest's website.
The End of Non-Expiring Flight Credits: For tickets booked on or after May 28, 2025, resulting flight credits will expire in one year or less. The era of indefinite credits is over for new bookings. You can find more information about this on the page for the new flight credit policy.
Dynamic Award Pricing: Since March 2025, the points required for an award flight vary more significantly based on demand, mirroring other airlines' pricing models.

Actionable Advice for the Modern Southwest Traveler

Check Your Eligibility: The 20,000-point promotion is targeted. Log in to your Rapid Rewards account and visit the promotions page to register before booking.
A Co-Branded Credit Card is Now Essential: For anyone flying Southwest annually with a checked bag, a co-branded credit card has become a near necessity. The first-bag-free benefit is the most effective way to circumvent these new fees. Explore options on the Chase website. It is a reminder of how crucial it is to find the smartest cards for booking your travel.
Chase the Companion Pass: With the bonus points counting towards the Companion Pass, this summer is a prime opportunity to earn this valuable perk, which allows a companion to fly for just taxes and fees. Review the requirements on Southwest's site. The issuer, Chase, has other valuable cards to consider; see how to maximize Chase Freedom bonuses for your travel fund.
Be Mindful of Expiration Dates: Pay close attention to the new flight credit policy to avoid losing value on canceled flights.

Conclusion: A More Complex, Yet Rewarding, Journey

The Southwest Airlines known for its simplicity is transforming. The introduction of bag fees ends a defining era. However, the airline is not abandoning loyalty. New promotions and the powerful, fee-negating benefits of its credit cards create a new playbook for the astute traveler. The journey with Southwest is no longer as simple, but for those who understand the new rules and leverage the tools available, there is still immense value to be discovered.