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RIP to Southwest' Free Checked Bags: How Credit Cards Can Save Your Travel Budget from the Grave 💀
December 12, 2024
In a major shift that’s sending shockwaves through the airline industry, Southwest Airlines has announced the end of its iconic “Bags Fly Free” policy after 54 years. Starting May 28, 2025, only the airline’s most elite customers will continue to enjoy complimentary checked luggage. For budget-conscious travelers who have long relied on Southwest’s generous baggage allowance, this change represents a significant hit to travel affordability. However, strategic use of the right credit cards can help offset these new expenses.
Southwest's Major Policy Change: What You Need to Know
Southwest CEO Bob Jordan confirmed the end of the airline’s longstanding free baggage policy, which has been a cornerstone of the carrier’s brand identity for over five decades. Under the new rules:
- Only Rapid Rewards A-List Preferred members and passengers booking Business Select fares will receive two free checked bags
- A-List Members, Southwest credit card holders, and select customers will be allowed one free checked bag
- All other passengers will be charged for both first and second checked bags on flights booked May 28 or later
This dramatic shift comes alongside other significant changes, including Southwest’s first-ever layoffs, the introduction of redeye flights, and plans to abandon its open seating policy next year in favor of assigned seats with premium pricing for extra legroom.
How Credit Cards Can Help You Navigate the New Southwest Reality
Despite these changes, savvy travelers can still minimize the impact on their wallets with strategic credit card use:
1. Southwest-Branded Credit Cards
While the airline hasn’t released specifics on checked bag pricing, holding a Southwest Rapid Rewards credit card will still provide value:
- One Free Checked Bag: Southwest-branded credit card holders will still receive one free checked bag. These include:
- Rapid Rewards Points: These cards offer points on Southwest purchases, helping offset other travel costs
- Anniversary Bonus Points: Annual cardmember bonuses can help accumulate points faster
2. General Travel Credit Cards with Baggage Benefits
Several premium travel credit cards offer statement credits for airline incidentals, including baggage fees:
- The Platinum Card® from American Express
- Hilton Honors American Express Aspire Card: $200 airline fee credit annually with a selected airline
- Citi Prestige Card: $250 annual travel credit that can be used for baggage fees
- Chase Sapphire Reserve®: $300 annual travel credit that can apply to baggage fees (and other travel purchases)
- U.S. Bank Altitude Reserve Visa Infinite: $325 annual travel credit applicable to baggage fees
- Capital One Venture X Rewards Credit Card: $300 annual travel credit through Capital One Travel portal
These cards offer various options for travelers looking to offset baggage fees across different airlines, not just Southwest, giving you flexibility as you adapt to Southwest's new baggage policy.
What This Means for the Future of Southwest and Budget Travel
Southwest’s policy shift reflects broader industry trends toward unbundled pricing. The airline is also introducing a new basic economy fare class, joining other major carriers in offering heavily discounted tickets with significant restrictions.
For consumers, these changes mean:
- The end of Southwest’s unique value proposition in a crowded market
- Potentially more competitive pricing as Southwest uses basic economy fares to compete with ultra-low-cost carriers
- Greater importance of credit card perks and benefits to offset rising ancillary fees
Bottom Line: Adapt Your Travel Strategy
As Southwest transforms into “just another airline,” according to analysts, travelers need to adjust their loyalty and booking strategies accordingly:
- Reassess your airline loyalty based on your typical travel patterns and total cost, including fees
- Consider applying for a credit card that offsets the new baggage charges
- Compare total trip costs across airlines now that Southwest's free bag advantage is gone
- Book before May 28 if possible to take advantage of the current policy
To maximize your travel savings in this new era of Southwest baggage fees, consider adding one of these premium travel credit cards to your wallet – the annual airline credits, flexible redemption options, and comprehensive travel benefits they offer will quickly outweigh their annual fees, ensuring your travel budget stays intact even as airlines continue to unbundle their services.
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Editorial Disclosure: Opinions expressed here are those of Kudos alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.
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