Southwest Swears Its Customers Aren’t Fleeing After Ditching Free Bags

It’s an airline executive’s job to be excited about their companies and project confidence, so it’s no surprise that Southwest executives told investors that they don’t think customers are leaving them after cutting popular benefits like free checked bags and introducing a stingy basic economy fare. 

When asked by airline industry analysts during Southwest’s quarterly earnings call Thursday, CEO Bob Jordan said there was “no customer impact that we can detect” as it relates to the changes and how it affects bookings, adding they’ve seen “no look-away” (i.e. customers booking with Southwest’s competitors). 

Executives said bookings have been “incredibly stable” since May 28, when the airline revealed its new fares and ended its Bags Fly Free policy. 

That’s not, however, what we’re hearing from travelers. In our recent survey of nearly 700 travelers, more than two-thirds of respondents who said they regularly flew Southwest are now considering (or already booking) other carriers as a result of that baggage policy change.

A.k.a. “look-away.”

Southwest may very well be shooting us straight, and they haven’t seen fewer bookings as of now, but if the sentiment from our survey of travelers prevails, it could be coming down the line. And that’s likely because many travelers haven’t yet felt the full pain of Southwest’s changes. 

Jordan said that roughly half of the people traveling today booked flights after the airline pulled its popular free bag policy and introduced basic economy fares. After paying $70 roundtrip for a checked bag (that used to be free), more and more once-loyal Southwest flyers might ready to head for the exit. 

There is one way to beat the worst of Southwest’s changes, though. Carrying a co-branded Southwest credit card gets you (and up to eight companions) a free checked bag on each and every Southwest flight. Not shockingly, Southwest execs noted there’s been an uptick in applications since the airline started charging for bags.

To help juice those numbers further, Southwest revamped its co-branded card lineup Thursday – complete with new benefits, a bigger bonus offer … and higher annual fees. Many of the new benefits added to these cards just give Southwest loyalists back what the airline took away in May – albeit at a higher cost. 

Still, some of Southwest’s other moves could be working in the airline’s favor. In the last year or so, Southwest started listing its fares on Google Flights and began selling tickets through online travel agencies like Kayak and Chase Travel℠. It’s possible that these moves – coupled with Southwest’s routine sales – are enough to offset the loss of once-loyal customers

A few more changes on the horizon for Southwest? Effective Jan. 27, 2026, Southwest will officially begin assigning seats – ditching the airline’s divisive “first come, first served” open seating model – and introduce new extra legroom seats. For travelers booking Southwest flights, you’ll see the option to select seats starting next Tuesday, July 29 – for flights departing late January of next year. 

Bottom Line

Southwest insists it hasn’t lost any customers after upending its fare structure in favor of baggage fees and a copycat basic economy product – but that stands in stark contrast to how many travelers say they feel.