Southwest Airlines used to be the airline of the people. It offered transparent, all-inclusive fares and a democratic (albeit chaotic) boarding system.

People loved the airline because it had very few extra fees, and the price it advertised was basically the price you paid. Yes, the airline offered extra-fee early check-in as well as a sort of cut-the-line “business” boarding option, but bags, non-alcoholic drinks, and everything you expected to be included were included.

Related: Another budget airline sounds alarms about the economy

That started changing way back in 2023 when Southwest (LUV) started chipping away at its identity. It was a small change at first — the airline started charging $8 per flight segment for WiFi rather than $8 for the entire day.

It may sound small, but it was the airline adding a new charge for passengers who already had the hassle of having to make a connection. That’s a small salt-in-the-wounds move that can’t possibly be worth the extra revenue versus the passenger annoyance.

💵💰Don’t miss the move: Subscribe to TheStreet’s free daily newsletter💰💵

Southwest, however, did not stop at adding an extra WiFi charge. It will drop its “bags fly free” policy on May 28 and plans to phase out its open boarding system by the second half of this year.

Once those two things happen, Southwest will be just like any other airline, charging for seat assignments, bags, and every little thing. But, just when you think the airline has shed every bit of its distinctive identity, it finds a new way to become just another airline.

Southwest will soon charge for bags and seat assignments.

Image source: Tim Boyle/Getty Images

Southwest Airlines makes another anti-passenger change   

Southwest used to be unique in that its flight credits never expired. That gave infrequent flyers confidence that if they bought a ticket and their plans changed, they would eventually be able to use the money spent on another flight.

A visit to Southwest’s website, however, shows that this policy has changed.

“A flight credit is a credit from either a canceled flight or a downgrade in fare that can be used to buy a future flight. Flight credits created on or before May 27, 2025 do not expire. Flight credits created from reservations booked or changed on or after May 28, 2025 will have a specified expiration date. All travel must be completed by the expiration date,” it shared.

More on travel:

United Airlines places big bet on new flights to trendy destinationGovernment issues new travel advisory on popular beach destinationAnother country just issued a new visa requirement for visitors

The airline also limits who can use a flight credit, although this not a new policy.

“Wanna Get Away fares receive a flight credit, which cannot be transferred to someone else. Business Select, Anytime, and Wanna Get Away Plus fares are eligible for a Transferable Flight Credit,” according to the airline.

Southwest Airlines uses a positive spin

No business leader ever comes out and says that their company has decided to abandon what made it great. Instead, they spin becoming less consumer-friendly as a positive for consumers.

“2024 was a foundational year for us. We further invested in the operation, we finalized our open labor contracts, and we laid out a comprehensive plan, our Southwest Even Better plan. The plan, which is the most transformational in the history of the company, includes initiatives to boost our efficiency and lower costs, including the ability to fly redeye to turn our aircraft faster,” said CEO Bob Jordan during the airline’s fourth-quarter earnings call.

What Jordan didn’t say is that a very ugly labor negotiation with its pilots saw those workers call out their company and its culture. The new contract does bring cost certainty to Southwest, and redeye flights will give passengers more choices.

Related: Delta Air Lines CEO shares unexpected plan to address Trump’s tariffs

Chief Transformation Officer Ryan Greene, however, made it clear that the company still intends to abandon in its open seating plan in order to make more money.

“We continue to make progress and move forward on our assigned and premium seating product and continue to expect to meet the financial targets and timelines we communicated at Investor Day to begin selling seat assignments in the second half of this year and operate flights with assigned and premium seating in the first half of next year,” he added.