By Callum Keown

Southwest Airlines is about to bring its 'bags fly free' policy to an end after 54 years. But there's still time to avoid the fees on your next trip.

The discount airline will start charging $35 for one checked bag and $45 a second this week, a spokesperson told Barron's on Tuesday. That's unless passengers have paid the airline's premium Business Select fares, hold the airline's credit card or have elite status on its loyalty program.

However, there is another way for travelers to make use of Southwest's free bags policy for a little longer -- but you've got to be quick.

The changes don't come into effect until Wednesday. That means tickets booked or changed on Tuesday will still come with two free bags "regardless of your travel date", according to the carrier's website.

Southwest announced the policy change in March as part of a range of measures designed to boost revenue growth. CEO Bob Jordan said in addition to generating revenue from bags it will increase uptake of its co-branded credit card program.

Consumers may not like it, but investors seem to love it -- the stock jumped more than 8% on the day of the announcement.

The stock is roughly flat since then at around $30, but that doesn't tell the whole story. The shares have experienced plenty of turbulence as airlines have been particularly exposed to trade and tariffs developments -- given the discretionary nature of travel spending. Southwest stock has been as low as $24 and as high as $34.84 since the beginning of March.

The sector's volatility has come into play again after President Donald Trump postponed 50% tariffs on the European Union over the weekend, having threatened to impose them from June 1 on Friday. Southwest rose 2.9% ahead of the open Tuesday after closing 0.8% lower Friday. United Airlines and Delta Air Lines were both up more than 2% after falling between 1% and 2% in the previous session.

Write to Callum Keown at callum.keown@dowjones.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

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May 27, 2025 08:15 ET (12:15 GMT)

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