Southwest Airlines – Balancing Rewards to Shareholder and Most Loyal Traveler

At the heart of these changes are both a commitment to operational excellence and a desire to reward their most loyal travelers. According to Bob Jordan, Southwest’s President, CEO, and Vice Chairman of the Board, “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.”

What’s Changing? 

Starting May 28, 2025, Southwest will implement new checked baggage policies, limiting the long-standing perk of two free checked bags to A-List Preferred Members and Business Select fare travelers. Other passengers, including loyalty members, will either face baggage limitations or need to pay for each checked bag.

The airline is also restructuring its fare bundles in two key phases:

• Phase 1 – Effective immediately, Business Select fares now earn more Rapid Rewards points, while Wanna Get Away® and Wanna Get Away Plus™ fares will see a reduction in points earned.
• Phase 2 – Beginning May 28, 2025, Southwest will introduce a new Basic Fare, designed to be the airline’s most budget-friendly option, but with fewer flexibility benefits. This phase will also implement expiration dates for flight credits.

These changes build on Southwest’s broader initiatives, which include rolling out assigned seating and extra legroom options, marking a significant departure from its traditional open-seat policy. Additionally, Southwest has entered into a partnership with Icelandair. This significant milestone—which marks the first time Southwest has entered into such an agreement —launched on February 13, the same day the airline introduced its first overnight redeye flights.

For a full breakdown of these changes and what they mean for travelers, you can read Southwest’s official press release here.