Southwest Airlines Increases Checked Baggage Fees Amid Rising Fuel Costs
Dallas-based Southwest Airlines has announced that it will be raising its checked baggage fees by $10, effective Thursday. This change comes less than a year after the airline ended its long-standing “bags fly free” policy, which was a key differentiator for the carrier. The decision to increase fees was made in response to the rising jet fuel costs since the start of the Iran war.
Starting Thursday, customers checking one bag will be charged $45, while a second bag will cost $55. However, some travelers will still receive a free first checked bag, including certain loyalty-tier members, eligible co-branded credit card holders, and active-duty military members.
The airline stated that the decision was part of an ongoing analysis of the business and was influenced by the evolving global backdrop. Southwest’s move to end its “bags fly free” policy in May of 2025 marked a significant shift for the carrier, as it had long marketed this perk as a key differentiator.
Southwest is not the only U. S. carrier to increase baggage fees in response to the war in the Middle East. Delta Air Lines raised its fees on Wednesday, while JetBlue and United Airlines increased their fees last week.
The war in the Middle East has caused oil prices to fluctuate, with threats to the Strait of Hormuz leading to disruptions in global supplies. As a result, jet fuel prices have risen significantly since the start of the conflict. On Wednesday, oil prices were falling towards $95 per barrel after President Donald Trump announced a two-week ceasefire with Iran. However, prices remain well above pre-war levels due to ongoing risks and uncertainties surrounding the conflict.
In response to rising fuel costs, many carriers outside of the U. S. are implementing or increasing fuel surcharges. This is a tool that is not typically used by U. S. airlines.
According to Argus Media, the average price for a gallon of jet fuel in major hubs like Chicago, Houston, Los Angeles, and New York was $4. 81 on Tuesday, up from $2. 50 on the day the war started. The energy market intelligence company’s U. S. Jet Fuel Index tracks average prices across these major hubs.
Despite the recent ceasefire, Iran has closed the Strait of Hormuz again in response to Israeli attacks on the Hezbollah militant group in Lebanon. This has cast doubt on whether the fragile ceasefire will hold.
In conclusion, Southwest Airlines’ decision to increase checked baggage fees is a direct response to the rising fuel costs caused by the war in the Middle East. This change follows the airline’s decision to end its “bags fly free” policy last year and is in line with other U. S. carriers who have also increased fees. The conflict in the Middle East continues to cause uncertainty in the airline industry, with rising fuel prices and potential disruptions to global supplies.