Southwest raises checked baggage fees as fuel costs rise with Iran war
Southwest Airlines is increasing checked baggage fees this week, charging $45 for a first checked bag and $55 for a second, the airline said, after it ended its “bags fly free” perk that had long differentiated the carrier. The Texas-based company said the change reflects an ongoing review of its business “against the evolving global backdrop,” attributing the decision to higher jet fuel costs linked to the Iran war.
Southwest said the new fees start on Thursday, continuing a shift away from its prior policy that let passengers check two bags for free. The airline ended that two-bag free policy in May 2025, marking a major change after years in which it marketed free checked bags as a core advantage.
The broader fee increases come as multiple U.S. carriers adjust ancillary pricing during periods of volatile energy costs. In a timeline of recent changes, Delta Air Lines’ higher baggage fees took effect Wednesday, and JetBlue and United Airlines raised their bag fees last week, according to the reporting.
Southwest’s update includes exceptions for some customers who still receive at least one free checked bag. The airline said some travelers will get a free first checked bag, including certain loyalty-tier members, eligible co-branded credit card holders and active-duty military members.
The cost pressures cited in the reporting tie back to disruptions in oil and fuel markets tied to the Iran war. The reporting said threats to the Strait of Hormuz, where roughly a fifth of the world’s oil typically passes, have contributed to higher jet fuel prices because jet fuel is refined from crude.
The story’s details also describe how market moves have remained unstable even amid tentative diplomacy. It reported that oil prices were dropping toward $95 per barrel on Wednesday after President Donald Trump announced a two-week ceasefire with Iran just before a deadline he had set for Tehran to open the Strait of Hormuz and allow oil tankers to exit the Persian Gulf, but said prices remained well above pre-war levels due to continued risks.
Iran closed the Strait of Hormuz again Wednesday in response to Israeli attacks on the Hezbollah militant group in Lebanon, according to the reporting, adding uncertainty about whether the ceasefire would hold. The airline industry’s pricing responses are therefore arriving as jet fuel costs fluctuate with the changing outlook for shipping through the region.
The reporting cited market data on jet fuel in major U.S. hubs, saying the average price for a gallon of jet fuel in Chicago, Houston, Los Angeles and New York was $4.81 on Tuesday, up from $2.50 the day before the war started, according to Argus Media’s U.S. Jet Fuel Index. It also noted that outside the U.S., some airlines have responded by adding or increasing fuel surcharges, a tool U.S. carriers do not typically rely on.
Sources: The Associated Press reported Southwest’s checked-bag price changes and connected them to higher jet fuel costs tied to the Iran war and Strait of Hormuz disruptions.