Travel expert issues warning to Southwest over controversial policy change

Southwest Airlines’ decision to end its signature “bags fly free” policy earlier this year has not produced the financial lift executives had hoped for. Instead, Knewz.com has learned that the change has drawn criticism from industry experts who say the timing of the move could undermine the airline’s efforts to stabilize profits.

Southwest introduces checked bags fee

In May, Southwest began charging passengers $35 for the first checked bag and $45 for an additional bag. The airline anticipated the new fees would bring in additional revenue, offsetting slumping ticket sales and rising costs. However, the results have been mixed. On its second-quarter earnings call, Southwest reported revenue that fell short of expectations, with executives conceding that sales of basic economy tickets dropped sharply immediately after the bag charges were introduced.

Travel expert rings the alarm for Southwest

Katy Nastro, travel expert at Going, warned that Southwest’s move came at the wrong time. She pointed to a weakened travel market shaped by tariffs and an unpredictable economic future. “What’s notable is the fact basic economy ticket sales tanked after they made changes in May, and are just now rebounding,” Nastro said in a statement. “The next half of the year will give us a better gauge into how all of these changes have played out, but so far, their timing could not have been worse amid a soft market. … Southwest routes are majority domestic, which means they were likely to feel the biggest sting,” she said.

Southwest claims everything is going well

Despite the drop in ticket sales, Southwest executives defended the decision. CEO Bob Jordan said revenue from bag charges has “exceeded our expectations so far.” Chief Financial Officer Tom Doxey projected that checked bag fees will generate more than $350 million in earnings before interest and taxes for the full year 2025.

Experts remain unconvinced

However, the travel expert remains skeptical. “One month of selling a ‘basic economy’ product they saw their revenue per available seat mile decline by .5 percentage point, and that’s with charging for bags,” Nastro said. “While they say bag fees are looking healthy, with softer demand, they’ve likely had to discount base fares which means they aren’t making pure profit from bag fees.” The early results suggest that while Southwest Airlines is collecting new revenue from checked bags, it may not offset the broader drag on ticket sales.

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