Southwest Airlines is ending its long-standing “two bags fly free” policy on Wednesday, introducing fees of $35 for the first checked bag and $45 for the second, except for certain travelers like top-tier loyalty members and those with Southwest credit cards.

The change, part of a broader shift in the airline’s business model under pressure from activist investors, also includes launching basic economy tickets with no free bags, non-changeable fares, and the end of open seating.

Starting in 2026, Southwest plans to assign seats and add extra legroom options for higher prices, CNBC has reported.

Written by B.C. Begley