Southwest Airlines, long known as the pioneer of low-cost, no-frills air travel, is making significant changes in 2025 as it seeks to bolster its financial performance. Facing mounting economic pressures, the airline is reshaping some of its most iconic policies — including open seating and free checked bags — in a bid to modernize operations and improve profitability.
Here’s a breakdown of the key updates passengers can expect in the coming months:
Flight Credits: Expiration Policy Introduced
What’s Changing:
Beginning May 28, 2025, flight credits issued from canceled trips or fare adjustments will come with expiration dates. Depending on the fare type, credits will expire after either six months or one year.
What Remains the Same:
Flight credits issued on or before May 27, 2025, will remain valid indefinitely and are not subject to this new expiration policy.
Introducing a New “Basic” Fare Option
What’s Changing:
Also launching on May 28, 2025, Southwest will roll out a new Basic fare — a lower-cost ticket with more travel restrictions. This new tier will replace the current “Wanna Get Away” fare, offering budget-conscious travelers a cheaper option, albeit with limited flexibility.
Checked Bag Fees Are Coming
What’s Changing:
Effective May 28, 2025, Southwest will begin charging for checked baggage on any reservations booked, ticketed, or changed from that date onward. This marks a major shift for the airline, which has long distinguished itself by allowing two free checked bags per passenger.
What to Expect:
Exact baggage fees have not yet been announced, but Southwest says pricing will align with industry averages.
Who’s Exempt:
Rapid Rewards Credit Cardmembers, along with up to eight additional passengers on the same reservation, will continue to enjoy one free checked bag.
Assigned and Premium Seating Options on the Horizon
What’s Changing:
In the second half of 2025, Southwest will introduce assigned and premium seating options for booking — a major departure from its signature open seating model. The airline expects to transition fully to this system in 2026.
What’s Coming:
Passengers will soon be able to choose from a variety of seat types, including standard, preferred, and extra-legroom options.
Workforce Reductions as Part of Cost-Cutting Strategy
What’s Happening:
In a historic move, Southwest announced earlier this year that it would cut 1,750 jobs, or 15% of its corporate workforce, marking the airline’s first major round of layoffs in its 53-year history.
What They’re Saying:
“These difficult decisions are part of our strategy to become a leaner, faster, and more agile organization,” said CEO Bob Jordan. The majority of layoffs are expected to be completed by the end of June 2025.
As Southwest undergoes this sweeping transformation, travelers should prepare for a more conventional flying experience — one more in line with the broader industry — as the airline seeks a more sustainable future.
