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4 Major Airlines Just Ended Free Checked Bags — How Credit Cards Can Save You $500+ Annually
July 1, 2025
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Major U.S. airlines are cutting popular freebies that travelers have relied on for years. But the right credit cards - and knowing which perks you actually have - can help you avoid the new fees entirely.
If you've noticed your airline miles disappearing or suddenly paying for checked bags that used to be free, you're not imagining things. Four major U.S. airlines just announced they're eliminating or reducing perks that millions of passengers counted on to make flying more affordable.
The good news? You don't have to accept higher travel costs as the new normal. Let's break down what's changing and how you can use credit card benefits to offset these cuts.
Which Airlines Are Cutting Perks?
JetBlue Airways
Starting February 1, 2026, JetBlue's lowest-tier Mosaic 1 members will lose their two free checked bags. The airline is also reducing complimentary alcoholic beverages from three to just one for all Mosaic members.
The cost impact: If you fly JetBlue just 4 times per year with one checked bag each way, that's $280 in new baggage fees annually (at current rates).
American Airlines
As of December 17, 2025, passengers can no longer earn AAdvantage miles or Loyalty Points on Basic Economy tickets, tickets that often cost $50-100 less than standard economy.
The cost impact: On a $300 round-trip flight, you'd typically earn around 1,500-2,000 miles. That's roughly $30-40 in future travel value gone.
United Airlines
United eliminated instant upgrades on full-fare tickets in August 2025, and also cut the Excursionist Perk, which gave travelers a free one-way segment on certain round-trip itineraries.
The cost impact: A domestic one-way flight typically costs $100-300, making this a significant loss for frequent travelers.
Southwest Airlines
The biggest shocker: Southwest, long beloved for its "bags fly free" policy, now only offers two free checked bags to A-List Preferred Members and Business Select fare customers. Everyone else pays $35 for the first bag and $45 for the second.
The cost impact: A family of four taking two trips per year with one checked bag each could now pay $1,120 in baggage fees they never had before
How Credit Cards Can Replace These Lost Perks
Here's what most travelers don't realize: many travel credit cards offer the exact perks airlines are taking away: free checked bags, priority boarding, airline credits, and more.
Credit Cards That Offer Free Checked Bags
- United℠ Explorer Card: Free first checked bag for you and one companion on United flights
- Delta SkyMiles® Credit Cards: Free first checked bag on Delta flights
- JetBlue Plus Card: Free first checked bag on JetBlue flights
- Southwest Rapid Rewards® Credit Cards: Early Bird Check-In and other perks (though free bags remain for all Southwest passengers flying with these cards)
The math: If you fly 4 round-trip flights per year, a free checked bag benefit saves you $280+ annually, often more than the card's annual fee.
[[ COMPARE_CARD * {"ids": ["2406", "1121"], "bestCategoryIds":["17", "18", "19"], "bestForTexts":["Priority Boarding", "Valuable Travel Perks"]} ]]
Cards with Airline Fee Credits
Many premium travel cards offer annual airline fee credits that can offset baggage fees, seat selection charges, and more:
[[ COMPARE_CARD * {"ids": ["106", "2888", "510"], "bestCategoryIds":["17", "18", "19"], "bestForTexts":["Elite Status and Services", "Luxurious Travel Bnenefits", "Annual Travel Credit"]} ]]
Cards That Earn Bonus Points on Travel
Since American Airlines eliminated mileage earning on Basic Economy, using a credit card that earns bonus points on all travel purchases becomes even more important:
[[ COMPARE_CARD * {"ids": ["509", "438", "510"], "bestCategoryIds":["17", "18", "19"], "bestForTexts":["Exceptional Travel Value", "High Travel Rewards", "Generous Rewards"]} ]]
The Budget Airline Alternative: Spirit's Surprising New Benefit
Here's an ironic twist: Just as Southwest eliminated free checked bags for most passengers, Spirit Airlines — long known for charging fees on everything — launched a credit card that offers two free checked bags per flight.
The Free Spirit Travel More Mastercard costs just $79 annually and includes:
- Two free checked bags per flight (not per passenger)
- Priority boarding
- 25% back on in-flight purchases
Why this matters: If you previously flew Southwest specifically for their free bag policy, Spirit's credit card now offers the same benefit at dozens of destinations for less than you'd pay in baggage fees on just two round-trip flights.
The math: Two round-trip flights with checked bags on the new Southwest = $280 in fees. Spirit's card fee = $79. That's $201 in savings, plus you still get two free bags on Spirit flights.
Of course, you're flying Spirit (which comes with its own trade-offs), but this shows how credit cards are now the primary way to get "free" checked bags — not airline policies.
The Problem: Too Many Cards, Too Many Perks to Track
If you're like most savvy travelers, you probably have 3-5 credit cards, each with different benefits:
- One card gives you free checked bags on United
- Another offers priority boarding on Delta
- A third has airline fee credits
- And your premium card includes airport lounge access
But here's the catch: If you can't remember which card offers which perk when you're booking a flight or checking in, those benefits might as well not exist.
According to a 2024 J.D. Power study, credit card holders utilize only about 30% of their available card benefits, primarily because they simply forget what perks they have.
How Kudos Helps You Maximize Every Travel Perk
This is exactly why Kudos built a comprehensive benefits tracker right into our browser extension. Here's how it works:
1. All Your Card Benefits in One Place
When you add your credit cards to Kudos, we automatically pull in every benefit each card offers, from free checked bags to travel insurance to purchase protection. No more digging through cardholder agreements or calling customer service.
2. Smart Recommendations at Checkout
When you're booking a flight on United.com, American.com, or any airline website, Kudos will:
- Show you which of your cards offers free checked bags with that airline
- Highlight cards with airline fee credits you haven't used yet
- Calculate which card will earn you the most points or miles on that specific purchase
- Remind you about travel insurance coverage that could protect your trip
3. Benefits That Expire or Reset
Many airline credits reset annually on your card anniversary or calendar year. Kudos tracks this for you and sends reminders so you never lose out on credits you've already paid for through annual fees.
4. Stacking Benefits for Maximum Value
Sometimes you can combine benefits from multiple sources. For instance:
- Use a card with free checked bags to avoid the fee
- Pay for the flight with a different card that earns 3x points on airfare
- Use a third card's travel insurance to protect against cancellations
Kudos helps you identify these stacking opportunities automatically.
Real-World Savings Example
Let's say you're planning a family vacation to Orlando:
Without Kudos tracking:
- Book Southwest flights: $1,200 total
- Pay baggage fees at airport: $280 (4 people × 2 bags × $35)
- Use a random card in your wallet: Earn 1,200 points
- Total cost: $1,480, earn 1,200 points
With Kudos optimization:
- Kudos reminds you that your Southwest credit card offers free bags
- Kudos recommends using your Chase Sapphire Preferred to book the flights
- Use the Southwest card to check bags (shows confirmation in app)
- Total cost: $1,200, earn 3,600 points + no baggage fees
- Savings: $280 in fees avoided + 2,400 extra points (worth ~$48)
Total value gained: $328
Beyond Airlines: Your Complete Rewards Arsenal
While we've focused on airline perks here, Kudos tracks benefits across all your cards:
- Purchase protection — automatically reminds you which card to use for electronics, jewelry, or other expensive items
- Extended warranty — helps you remember which cards double manufacturer warranties
- Cell phone protection — alerts you to pay your phone bill with the right card for coverage
- Rental car insurance — shows which cards offer primary vs. secondary coverage
- Dining and entertainment perks — from statement credits to bonus points categories
The Bottom Line
Airlines are betting that most travelers won't notice these perk cuts — or will just accept them as inevitable. But you don't have to.
The strategy is simple:
- Get the right credit cards for your travel patterns (1-2 airline cards + 1 premium travel card is a solid setup for most people)
- Use Kudos to track and maximize every benefit those cards offer
- Let Kudos automatically recommend the best card for each purchase
As airlines continue to reduce complimentary services, your credit card benefits become more valuable than ever. But only if you actually use them.
Ready to stop leaving money on the table? Add your cards to Kudos today and see which perks you've been missing. It takes less than 2 minutes, and the average user discovers $400-600 in unused annual benefits they didn't even know they had.
Unlock your extra benefits when you become a Kudos member
Turn your online shopping into even more rewards
Join over 400,000 members simplifying their finances
Editorial Disclosure: Opinions expressed here are those of Kudos alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.
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