Southwest Airlines outlines changes to drive revenue growth and reward its most loyal customers

Southwest Airlines introduces new fare structures and loyalty perks, aiming to enhance profitability and customer choice, while maintaining strong operational performance and hospitality. The article Southwest Airlines outlines changes to drive revenue growth and reward its most loyal customers first appeared in TravelDailyNews International.

Mar 17, 2025 - 10:29

Southwest Airlines outlines changes to drive revenue growth and reward its most loyal customers

Southwest Airlines Co. is evolving rapidly, implementing new initiatives that support business objectives and create choice for current and future Customers of America’s largest domestic carrier.1 Initiatives announced today will reward the airline’s most loyal Customers and give all Customers more options for a broader range of travel experiences.

“We have tremendous opportunity to meet current and future Customer needs, attract new Customer segments we don’t compete for today, and return to the levels of profitability that both we and our Shareholders expect,” said Bob Jordan, President, Chief Executive Officer, & Vice Chairman of the Board of Directors at Southwest Airlines. “We will do all this while remaining focused on what’s made us strong – our People and the authentic, friendly, and award-winning Customer Service only they can provide.”

The initiatives include the following:

Southwest will continue to offer two free checked bags to Rapid Rewards A-List Preferred Members and Customers traveling on Business Select fares, and one free checked bag to A-List Members and other select Customers. Southwest will credit one checked bag for Rapid Rewards Credit Cardmembers. Customers who do not qualify for these free bag options will be charged for their first and second checked bags (weight and size limitations apply). Changes will apply to flights booked on or after May 28, 2025.²
The carrier recently adjusted the number of Rapid Rewards points Customers earn on qualifying flights. Customers now earn more points on Business Select fares while earning less on Wanna Get Away and Wanna Get Away Plus fares. Southwest Rapid Rewards, the carrier’s loyalty program, will also introduce variable redemption rates across higher-demand and lower-demand flights.
These strategic moves, aimed to deepen and reward loyalty between Southwest and its most engaged Customers, create new opportunities to reach consumers who value fare above everything else. To align with these changes, Southwest will introduce a new, Basic fare on our lowest priced tickets purchased on or after May 28, 2025, in advance of offering assigned seating and extra legroom options.
Southwest continues to widen its distribution channels to reach new Customers, with flights and fare products now available to book through online travel agency Expedia, beginning last month.
Flight credits issued for tickets purchased on or after May 28, 2025 will expire one year or earlier from the date of ticketing, depending on the fare type purchased.³

These changes add to the initiatives already underway at Southwest, including the forthcoming implementation of assigned seating and extra legroom options and an initial industry-standard airline partnership with Icelandair that began on February 13, the same day the carrier’s first-ever scheduled overnight redeye flights launched. As Southwest looks to provide a great travel experience for its Customers, the airline continues to focus on operational excellence. Today, Southwest leads the industry in ontime performance for 2025 and has operated 98.3 percent of its published flight schedule without cancellations – a year-over-year improvement.⁴

Southwest Airlines remains committed to its core tenets – amazing People who deliver great Hospitality to all Southwest Customers, a strong network with the most nonstop flights within the U.S.5, and a loyalty program that gives real value to Rapid Rewards Members.

1. U.S. Dept. of Transportation quarterly Airline Origin & Destination Survey since Q1 2021

2. Southwest’s checked bag weight and size limitations will continue to apply

3. Travel credits will expire one year from ticketing date for all fares except Basic, which will expire six months from ticketing date

4. Operational data as of February 28, 2025, as reported to the U.S. Department of Transportation

5. Cirium data June 2025 schedules of U.S. domestic air carriers

The article Southwest Airlines outlines changes to drive revenue growth and reward its most loyal customers first appeared in TravelDailyNews International.