Southwest vs. Legacy Carriers: Bag Fees and the New Normal

The Myth of the Free Bag

We've all heard it: Southwest is the airline that doesn't charge for checked bags. That's been the gospel for decades, a key reason loyalists swear by the carrier. But that's no longer true. As of May 28, 2025, Southwest ended its 'bags fly free' policy for new bookings, charging $35 for the first checked bag and $45 for the second (CBS News). This isn't a minor tweak; it's a seismic shift in the US airline landscape. For years, Southwest's no-fee bag policy was its single most powerful marketing weapon, a tangible difference that made the airline feel like the consumer's champion. Now, with that advantage gone, the calculus changes. We need to rethink how we compare Southwest to the legacy carriers like Delta, United, and American. The old rules of thumb—'Southwest is always cheaper when you factor in bags'—are dead. In this piece, we'll break down the new reality and offer a clear recommendation for the savvy traveler.

The New Southwest: What You're Actually Paying For

Let's be clear: Southwest is still a great airline for many people. Its no-change-fee policy remains a huge differentiator. You can cancel a flight up to 10 minutes before departure and get a flight credit that never expires (The Points Guy). That's a level of flexibility that no legacy carrier matches. But that flexibility now comes with a price tag, and it's not just the bag fee. Southwest has also retired its open-seating model, moving to assigned seats with categories like Standard, Preferred, and Extra Legroom (AP News). This is a fundamental change to the Southwest experience. The airline that built its brand on egalitarian boarding now has a tiered product, just like everyone else. So what are you really paying for when you fly Southwest? You're paying for the flexibility. You're paying for the lack of change fees, which can be a lifesaver if your plans are fluid. And you're paying for the fact that, despite the new bag fee, Southwest still doesn't charge for the first two checked bags if you're in Business Select or are an A-List Preferred member (CBS News). For the casual traveler who checks a bag, though, the math has changed.

Legacy Carriers: The Bag Fee Reality

Delta, United, and American have been collecting bag fees for years, and they've gotten very good at it. US airlines collected about $7.27 billion in checked-bag fees in 2024, with American, Delta, and United each earning more than $1 billion (CBS News). That's not a side business; it's a core revenue stream. The legacy carriers have built their entire pricing structure around these fees, offering 'Basic Economy' fares that are cheap but come with a host of restrictions, including no free checked bag. The result is that a legacy carrier's advertised fare is often a lie—the real price includes the bag fee, seat selection, and other add-ons. But here's the thing: the legacy carriers also offer premium cabins and a more extensive network. If you're flying internationally or need to connect through a major hub, you're often better off with a legacy carrier, even with the fees. The key is to understand the total cost, not just the headline fare.

Head-to-Head: Southwest vs. Legacy vs. Ultra-Low-Cost

To make a real comparison, we need to look at three types of carriers: Southwest, legacy carriers like Delta, and ultra-low-cost carriers (ULCCs) like Frontier. Each has a different value proposition. We'll evaluate them on four criteria: flexibility, bag fees, network, and overall value.

This table paints a clear picture. Southwest is no longer the obvious choice for everyone. For a traveler who checks a bag and doesn't need flexibility, a legacy carrier might be just as cheap, especially if you can find a fare that includes a free bag. But for a traveler who prizes flexibility above all, Southwest still wins. The ULCCs, meanwhile, are a trap for the unwary. Frontier's change fees might be lower than a legacy's, but they're still significant, and the bag fees can be even higher. The real question is: what kind of traveler are you?

Who Should Fly What: The Verdict

Let's get specific. Say you're flying from New York to Los Angeles for a week-long trip. You're going to check a bag. You book a Basic Economy fare on United for $200 round-trip, but then you add a $35 bag fee each way, bringing the total to $270. Southwest's fare is $250, and you pay $35 for the first bag each way, totaling $320. The United option is actually cheaper. But if your plans are uncertain, Southwest's no-change-fee policy could save you hundreds if you need to rebook. For the flexible traveler, Southwest is still the winner. For the price-conscious traveler who packs light, a ULCC like Frontier might be tempting, but beware: Frontier's change fees are $49 to $99 depending on how close to departure you make the change (The Points Guy), and they charge for carry-ons too. In our view, the sweet spot is the legacy carriers if you're on a budget and need a checked bag, but Southwest if you value flexibility. The days of automatically choosing Southwest are over. The new normal requires you to do the math.

Sources

• AP News - https://apnews.com/article/southwest-airlines-assigned-seats-open-seating-ends-0f131c413349a14072f78288e5c056b2
• CBS News (Southwest checked-bag fees) - https://www.cbsnews.com/news/southwest-airlines-new-checked-bag-fee-35/
• The Points Guy - https://thepointsguy.com/airline/refund-when-flight-drops-in-price/
• CBS News (US bag fee revenue) - https://www.cbsnews.com/sanfrancisco/news/checked-bag-fees-us-airlines-southwest-united/