Goodbye to ‘bags fly free’ on Southwest Airlines, the last freebie in America

Main Idea: Southwest Airlines is ending its long-running free checked bags policy in a move that could upset customers but boost profits.

Key Points:

• The airline will stop offering two free checked bags on May 28, ending a policy that helped define its brand for decades.
• Southwest is also changing other long-standing perks, including assigned seats, basic economy tickets, and flight credit rules, as it tries to raise profits.
• Elliott Investment Management has pushed Southwest to improve returns, and the market has reacted positively to the new fee plans.
• Some experts warn the change could backfire if more passengers bring extra carry-on bags, slowing airport operations and hurting Southwest’s speed advantage.