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A little over a year ago, Southwest Airlines made a stunning move as the carrier ended its longstanding and beloved "Bags Fly Free" policy as it began charging passengers for checked luggage. While controversial at the time, the move seems to be paying off for Southwest, and one executive is now explaining why.
During a recent panel appearance, Southwest executive Tony Roach explained that the controversial move was necessary to ensure Southwest's survival against a changing landscape.
Southwest Ended Free Bags
Back in March of 2025, Southwest Airlines shocked the airline industry as it announced that it would begin charging for checked bags, with CEO Bob Jordan calling the decision a “tremendous opportunity” for the airline to boost its profitability.
“We have tremendous opportunity to meet current and future customer needs, attract new customer segments we don’t compete for today, and return to the levels of profitability that both we and our shareholders expect,” Jordan said at the time.
Following the announcement, the airline officially began charging for checked bags on all flights on or after May 28, 2025, with the first checked bag costing customers $35 and a second bag costing $45. When Southwest previously allowed two checked bags free of charge, two checked bags would now cost $80.
Less than one year after the airline began charging for checked luggage, Southwest increased those fees as the global cost of oil skyrocketed as a result of the conflict in Iran. Southwest raised its fees by $10, making the first checked bag $45 and the second $55. Though fuel prices have since fallen, the increased checked baggage fee remains as two checked bags now cost $100 when they used to both be free.
The move was the most high-profile of several major changes for Southwest as it looked to better boost profits and compete with legacy carriers like Delta, United, and American. In addition to ending free bags, Southwest also ditched its longstanding open-seating policy.
Southwest Executive Speaks Out
While the move was undeniably controversial, one Southwest executive says that it was necessary for the airline's survival.
Speaking at Fortune’s COO Summit last month, Southwest’s Executive Vice President and Chief Customer & Brand Officer Tony Roach compared the airline's transformation to “changing the engine in the car.” However, he says it was a necessary move.
“We are a brand that’s been iconic, but we want to be sustainable,” Roach told a crowd of execs at the “The Bold Bets That Are Reshaping Customer Experience Today” panel via Fortune. “And so fundamentally we need to change our business model, so that we have the future to look forward to.”
Roach said the company is “running better than it was before,” and that certainly seems to be the case. Southwest’s stock is up more than 25% over the last year as the airline has successfully boosted profits. And despite the backlash when Southwest initially decided to end free bags, Southwest's customer satisfaction remains high.
Now, it sounds like there's even a chance that Southwest could make a run at Delta's spot as American's top airline.
