Southwest's New Bag Fees and Seat Assignments: How to Cope Using Credit Card Perks

Southwest Airlines has upended two of its most beloved perks: open seating and free checked bags. Budget-conscious travelers are rightfully worried about extra costs. This guide explains what changed and shows how savvy use of Southwest Rapid Rewards credit cards (and other travel cards) can offset new fees like paid seat assignments and baggage charges.

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Southwest's Big Policy Changes: No Open Seating, No Free Bags

For over 50 years, Southwest was famous for two things: open seating (no assigned seats) and two free checked bags for every passenger. Both of those perks are now gone.

Assigned Seats Replace Open Seating: Starting with tickets sold in late 2025 (for flights in early 2026), Southwest phased out its first-come, first-served seating. No more lining up in A/B/C boarding groups hoping for a good seat. Instead, every passenger now gets an assigned seat on their boarding pass. The airline found that about 80% of customers actually preferred assigned seats over the old system.

Along with this, Southwest introduced new seat categories. "Preferred" seats (up front) and extra-legroom seats come at a higher fare or an added fee. Essentially, Southwest's seating is becoming more like other airlines: you can pay more to sit in a better spot, and those buying the cheapest "Basic" fares might be stuck with whatever seat is left.

Baggage Fees Introduced: Effective May 28, 2025, Southwest ended its "bags fly free" policy that had allowed two free checked bags per customer. Now, passengers must pay:

• $35 for the first checked bag (each way)
• $45 for the second bag (each way)

This brings Southwest in line with other major U.S. airlines that have long charged for luggage. It's a big hit to loyal Southwest flyers. Free bags were "one of the main reasons I still fly Southwest," as one disappointed traveler put it.

There are a few exceptions: Business Select (premium fare) and top-tier A-List Preferred flyers still get two free bags, and A-List elite members get one free bag. But regular customers on Wanna Get Away, "Basic," or standard fares will now pay for checked luggage.

Why This Matters for Your Wallet

These changes can increase the cost of a Southwest trip significantly:

• A family used to checking bags for free now faces potentially $70 extra per person on a round-trip (for one bag)
• The freedom to pick any open seat is gone. You might have to pay for seat selection, especially if you want a window/aisle or to sit together as a group

The good news? Southwest and its credit card partner (Chase) rolled out new benefits to soften the blow for loyal customers. And even if you're not a Southwest cardholder, other travel credit cards can help cover these new fees.

How Southwest Credit Cards Offset the New Fees

Southwest Rapid Rewards credit cards weren't particularly exciting in the past (since bags and seats were free anyway), but in 2025 they got a major overhaul to address the new fees. If you're a frequent Southwest flyer, carrying one of these co-branded cards can significantly reduce or even eliminate the added costs.

Free Checked Bag for Cardholders

Every personal Southwest credit card now grants a free first checked bag for the cardholder and up to 8 additional passengers on the same reservation. This essentially extends the old "bags fly free" perk to cardholders.

For example, if you have a Southwest card and book travel for your family of four, each of you gets the first bag free. That saves up to $280 on a round-trip (4 people x $35 x 2 ways).

Tip: Make sure your Southwest Rapid Rewards number (linked to your credit card) is in the reservation. The fee waiver is applied automatically at check-in for cardholders. This benefit alone can justify the card's annual fee if you fly with luggage a couple of times a year.

Early Boarding and Seat Selection Perks

To ease the pain of losing open seating, Southwest cards now offer priority boarding and seat selection benefits for cardholders:

• All Southwest cardholders (and up to 8 companions) get to board earlier, typically in Boarding Group 5, ahead of general boarding. This helps ensure you can stow carry-ons and sit together.
• Cardholders can select seats even on Basic fares, which usually wouldn't allow advance seat choice.

The higher-tier cards give even bigger perks. The Southwest Priority Card ($229 annual fee) lets you and your companions choose Preferred seats at booking and even take any open Extra Legroom seats for free within 48 hours of departure. If there are unsold premium seats (with more legroom) two days before the flight, a Priority cardholder can snag them without paying extra.

Lower-tier cards (Plus and Premier) allow free selection of standard seats (and in some cases Preferred seats) shortly before departure (within 48 hours), which at least guarantees you won't be stuck with a middle seat even on a Basic ticket.

Sign-Up Bonuses = Free Flights (or Fee Credits)

Southwest Rapid Rewards cards typically come with generous welcome bonuses, often 50,000+ points on approval (sometimes much more during promotions). These points can be redeemed for Southwest flights, which saves you cash that can offset the new seat or bag fees.

For perspective, 50k points can be worth around $700 toward Southwest travel if used wisely. That could cover a couple of round-trip flights including the baggage fees. The bonus also helps you toward earning the coveted Companion Pass (which lets a friend fly nearly free with you).

Annual Credits and Bonus Points

Some Southwest cards come with additional goodies every year that can defray travel costs:

• Anniversary bonus points: 3,000 to 7,500 points each year depending on the card tier
• Premier Card ($149 annual fee): 15% off flight discount code each year (good on one reservation)
• Plus Card ($99 annual fee): 10% off code
• All cards: 25% rebate on inflight purchases (like Wi-Fi or drinks)

Those discounts can easily save $30-$50 or more on a booking, which helps offset baggage fees or seat upgrades.

Card Comparison: Southwest Cards vs. Other Travel Cards

Southwest Cards

Southwest Rapid Rewards Plus ($99/yr) — 1st bag free for you + 8 companions. Standard seat selection within 48h. Best for occasional flyers.

Southwest Rapid Rewards Premier ($149/yr) — 1st bag free for you + 8. Preferred seat selection within 48h. Best for regular flyers.

Southwest Rapid Rewards Priority ($229/yr) — 1st bag free for you + 8. Preferred seats at booking, Extra Legroom free within 48h. Best for frequent flyers.

Flexible Travel Cards

Chase Sapphire Reserve ($550/yr) — $300 travel credit covers bag fees automatically. Best for multi-airline travelers.

Capital One Venture X ($395/yr) — $300 travel credit + miles erase any travel purchase. Best for points flexibility.

Amex Platinum ($695/yr) — $200 airline fee credit (select Southwest). Best for premium perks + lounges.

Using General Travel Cards to Cover Bag and Seat Fees

Maybe you're not ready to carry a Southwest card. Or perhaps you fly other airlines too (especially now that Southwest isn't automatically the fee-free option). Flexible travel rewards cards can cushion the blow of extra fees.

Leverage Travel Credits

Premium cards like the Chase Sapphire Reserve and Amex Platinum come with hefty annual travel credits that can automatically offset airline fees:

Chase Sapphire Reserve's $300 annual travel credit will reimburse any travel expense, whether it's a Southwest baggage fee, a seat upgrade charge, or an Uber ride. As soon as you put a travel charge on the card, you'll see a statement credit until $300 is used up each year.

Amex Platinum's $200 airline incidental credit lets you choose one airline each year for the benefit. If you select Southwest as your Amex airline, you can charge your bag fees or seat selection fees to the Platinum card and get reimbursed up to $200 per year.

Important: With Amex, these credits apply to incidentals like baggage, seat assignments, and lounge passes, but not airfare itself. So you'd pay for your Southwest ticket normally, but use the Platinum card at the airport or on Southwest's site to pay baggage charges, and the fee will disappear from your bill a day or two later.

Use Points to Erase Charges

Several travel cards allow you to pay travel expenses with points or miles. The Capital One Venture X is a prime example.

You can charge any travel purchase (flight, hotel, bag fee) to the card, then go online and redeem your Capital One miles to "cover" that purchase at a rate of 1 cent per mile. In practice, say you paid $140 in baggage fees on Southwest over a few trips. You could use 14,000 miles to get a $140 statement credit and wipe out those charges.

This is a great way to handle fees you can't avoid. You're effectively using rewards to pay them.

Transfer Points to Southwest

Don't forget that Chase Sapphire cards let you transfer points 1:1 to Southwest Rapid Rewards. If you have a bunch of Ultimate Rewards points, you could top up your Southwest account and book a points ticket (taxes are only $5.60 one-way domestically).

While that doesn't directly pay your bag fee, it means your flight is free, so paying $35 for a suitcase hurts a lot less when the flight itself cost $0 out of pocket.

Similarly, flexible points from Chase, Amex, and Capital One can be transferred to other airline programs. The key is flexibility: points give you options to save money elsewhere.

Consider Airline Co-Branded Cards

If Southwest's changes have you considering jumping ship to another airline, look into that airline's credit card. Most of them offer at least one free checked bag for the cardholder and companions:

• Delta SkyMiles Gold Amex: First bag free for up to 9 people on your reservation
• United Explorer Visa: First bag free for cardholder + 1 companion
• American Airlines AAdvantage Platinum: First bag free for cardholder + 4 companions

These cards also typically grant priority boarding (so you have space for carry-ons) and some give other perks like lounge passes or discounts on inflight food.

Important: You generally have to use that card to purchase your flight (or at least have it associated with your loyalty account) for the baggage benefit to apply. So plan accordingly: put your airfare on the airline card to trigger the free bags, and use your general travel card for other travel spending.

The Math: Is a Southwest Card Worth It Now?

Let's run the numbers for a family of four taking two Southwest trips per year:

Without a Southwest card:

• 4 people x $35 bag fee x 2 ways x 2 trips = $560/year in bag fees

With Southwest Plus Card ($99/year):

• Bag fees: $0 (first bag free for cardholder + companions)
• Annual fee: $99
• Net savings: $461/year

With Southwest Priority Card ($229/year):

• Bag fees: $0
• Annual fee: $229
• Extra Legroom seats: Free (within 48h, if available)
• 7,500 anniversary points: ~$100 value
• Net savings: $331/year (plus seat upgrade value)

The math is clear: if you fly Southwest at least twice a year with checked bags, even the entry-level Southwest card pays for itself.

Final Thoughts

Southwest's elimination of free bags and open seating might feel like the end of an era, and it does mean travelers have to be more fee-conscious. But with the right credit card strategy, you can largely avoid or offset these new charges.

For frequent Southwest flyers: Getting a Rapid Rewards Visa might be a no-brainer now. The math on savings from bag fees alone makes it worth it, not to mention the seat perks and big sign-up bonuses.

For occasional travelers or multi-airline flyers: A flexible card like the Chase Sapphire Reserve or an airline card for whichever carrier you use most could be the way to go.

In a world where "free" perks are disappearing, being card-savvy is essential. By leveraging credit card benefits, you can continue flying on a budget. Whether it's getting a $0 bag fee, scoring an early boarding group, or erasing a $50 seat charge with points, these tactics ensure you won't be blindsided by Southwest's changes.