Upcoming changes to the Southwest Airlines Rapid Rewards program may be worse than we thought. The airline hasn’t released details, but we already know that:
The value of points is going to change. Currently they offer a fixed value per point. When the price of a ticket goes up, the points price goes up proportionately (and vice versa). Going forward, points will become less valuable when redeemed against the most expensive tickets at the busiest times – when you need your points most! – although they might become more valuable when redeemed for flights that aren’t selling.
Fewer points are earned on the cheapest tickets. Southwest cut points-earning by two-thirds, from 6 points per dollar down to 2, on their least expensive tickets (Wanna Get Away) that most people buy. This prepares for the change in nomenclature to basic economy. Other airlines offer fewer points earned on these fares, and in Delta’s case none, so they aren’t out of step with the industry even though it’s a huge devaluation.
They are introducing basic economy fares. Their least expensive fares are not going to offer advance seat assignments or changes. It’s unclear what restrictions or costs will be associated with cancelling a ticket and receiving future travel credit. These fares will not come with free checked bags.
And they are going to start expiring travel credits. In 2022 they made travel credit never expire. Going forward they will expire after 12 months, but just 6 months for cancelled basic economy tickets.
Since customers redeem points directly against paid ticket prices, presumably the least expensive redemptions will be for their basic economy tickets.
- Most award tickets may not come with seat assignments
- And those award tickets will no longer include free checked bags
- Will these redemptions even be fully refundable? How will new restrictions on travel credits for basic economy fares affect cancelling tickets and redepositing the points?
Southwest has not shared many details about their changes, which are universally bad for customers. Points aren’t going to retain their value against expensive tickets, though the airline hasn’t said what they’ll be worth. You’ll earn fewer points, too, when buying the cheapest tickets plus they’re taking away checked bags. But the real open questions I think are whether award tickets won’t even get seat assignments or free points redeposit when you cancel.
I reached out to the airline with questions about these changes and haven’t received answers but will share when I learn just how bad they will be for points travelers.
Update: the airline does confirm that expiration of travel credits will not be retroactive to credits in your account prior to May 28, 2025 (although if you use those to book a ticket and cancel after May 28, you get new expiring credits). They also confirm that it will be possible to cancel a basic economy award ticket for credit, but no basic economy award details beyond that fact – including “how the fare products will map to seat assignments.”
We are not expected to learn more until the airline’s first quarter financials release and call in April.
I am curious whether you can “game” the travel credit expiration date by purchasing a ticket and then cancelling and receiving another 6 (or 12) months.
I have done this with Delta and American. For example, I will buy a ticket, wait 2-3 days, cancel. Cancellation results in a credit for the amount but with extended expiration date.
It’s as if someone at Southwest has long had a list of all possible ways to extract more money from customers, and management decided to carpet bomb us with it. The stock market would have been satisfied with just the bag fees. The damage to customer loyalty would have been far less.
This attack on all fronts has the look of a passive aggressive response to Elliott: giving them what they asked for, good and hard.
There are many analogies between SWA changes and the general vibe in 2025.
Is there literally anything that Southwest (sorry, Elliott Management) is making better for passengers or crews? Other than pillaging assets, then forcing a merger here and cashing out, I’m not seeing it. This is the private equity, hedge fund death-spiral. Wave goodbye, everyone!
@nsx at FlyerTalk — Yup, you could also call it a blitzkrieg of bullcrap. Gooder! Harder!
I realize these are all dramatic changes to the WN program but isn’t this the exact same blog you posted yesterday?
@Joseph — 100%. Some are calling it the ‘smash-and-grab’ (them by the..)
@AC — I take it you have nothing meaningful to contribute so you’re doing a ‘but, but… Gary repeats somethings, sometimes…’ Sir, if you can’t handle the heat, stay out of the kitchen. Wait, you’re ‘AC’ so maybe you really don’t like ‘the heat’ after all.
Southwest stock price up 2.5% today. Butt-hurt bloggers mean nothing to Wallstreet.
Here’s maybe the real issue for Southwest. These changes might be needed as too much of their flying base is unprofitable and they don’t have long haul premium to make up the difference. So you alienate Joe Six Pack that wants free bags for his family and to be able to use minimal points to go to Disney in July to see Mickey. Joe and Judy fly Spirit instead.
But who do you replace Joe and Judy with that will reverse the material slide in operating profits?
Good food for thought. This does not bode well for the remainder of Southwest points I need to use up.
@Disgruntled American — Really? That’s interesting. I guess I’ve never paid too close attention to my credits but it always seemed like to me you can play around with your credits but the expiration date never changed. Regardless, with the way things are trending with Southwest I’d be shocked if they allowed that
@Ed — You remind me of commenter @derek from Gary’s post about Southwest from yesterday—he suggested that bloggers ‘slam’ the airline similar to how you suggest these are ‘butt-hurt’ bloggers today.
Sir, no one supports this, except SWA executives and Elliott Management. It harms passengers and crews.
On stocks, yeah, up 2% today (yet down 8% YTD). Give it time. Passengers will not reward WN with more business.
And you praise Wall Street? After the weeks they’ve been having?? The economy is tanking overall—it’s the damn tariffs, betraying our allies, and the general corruption at home. Bad leadership—both at the airline and in the country, these days.
No @AC it is not. Not even close. This one takes the changes announced and discusses what they mean for award travel.
@L737 — The way these ‘too big to care’ companies are abusing us by changing their rules against us reminds me of the relationship between Bojack Horseman and his abusive father Butterscotch.
Here’s a transcript in case anyone forgot:
Young BoJack: “Happy Fathers’ Day, daddy…” *hands his dad a card*
Butterscotch: “What is this supposed to be, a lima bean?”
BoJack: “It’s a heart..”
Butterscotch: “That’s some shoddy craftsmanship, son!”
BoJack: “I tried my best..”
Butterscotch: “No, you didn’t! You slacked off and took the easy way out…In this world, you can do things the easy way or the right way.. You take a boat from here to New York, you gonna go around the Horn like a gentleman, or through the Canal like some kind of Democrat??”
BoJack: “..umm, the Canal.”
Butterscotch: *slaps BoJack* “YOU GO AROUND THE HORN LIKE GOD INTENDED!”
Yeah, so, basically, as of now, and the foreseeable future, we’re all being abused by these oligarchs and fascists, and like BoJack, we’re going to ‘grow up’ having to ‘process’ a lot–hopefully, we turn out for the better. Either way, it was… nice while it lasted.
I thought you might enjoy the reference. Since, you appear to be a man of culture.
@1990 — Ha-haa! Another excellent reference! And quite fitting in this case, sigh…Southwest was in a very different place when Bojack was airing…
@L737 — Glad the reference was not lost on you. And your ‘Ha-Haa’ reminded me of Hedonism Bot from another great show: ‘How deliciously absurd!’
As I’ve said on here before, the least SWA could do is to bring back those delicious honey roasted peanuts (I know, it was because of the allergies, so that change was for the best, but still…). A little more honey, less vinegar would go a long way these days.