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Update, 3/11 at 9am: Southwest will sell the Wanna Get Away fare through 5/27. As of 5/28 it will be replaced by a Basic fare.
Basic fares can’t be changed, but can be canceled for credit that will expire just 6 months from the date of original ticketing. That means if you book more than 6 months in advance, your ticket will have zero value if you need to cancel close-in to your flight.
Award bookings will be available on basic fares, and will continue to be fully refundable on all fare levels. Rapid Rewards points never expire.
For now, Southwest expects all fares to include free carry-on bags.
Expect checked bag fee charges and details to be announced by the end of April.
Updated fare comparison chart for tickets purchased as of 5/28:
Update, 3/11 at 7:30am: As expected after last week’s unannounced points earning reduction, the other shoe has fallen. This will be devastating news to Southwest loyalists and was unthinkable just a short time ago.
Thanks to a board takeover by activist hedge fund Elliott, Southwest will become just another airline, except without a first-class cabin for now. The old Southwest way is dead, a casualty of post-pandemic travel changes.
- Southwest will charge bag fees for tickets bought on or after 5/28 on all fares except Business Select, prices will be announced shortly. A-List Preferred elites will get 2 free bags and A-List elites and cardholders will get 1 free bag.
- Southwest will launch basic economy fares, restrictions have not yet been announced.
- Southwest credit currently never expires, but effective for flights bought on 5/28, credits will expire 12 months after the date of original ticketing.
- Southwest will start charging dynamic pricing for award tickets, based on flight demand. Currently, the airline charges a fixed rate based on the fare. This may create a better points value for low-demand flights, while creating a worse points value for high-demand flights.
More details to follow…
Originally posted on 3/5:
For the first time in decades, Southwest is struggling.
The nation’s largest domestic carrier has been unable to take advantage of a shift in pandemic era changes to consumer demand for premium cabin travel.
The airline’s stock price has dropped from $63.42 per share in April 2021 to $29.95 today. That contrasts with big gains made by Delta and United’s shares over that time period.
After coming under activist investor pressure from hedge fund Elliott, the airline is ending the open seating cattle call, adding red-eyes, selling its flights on other websites, and making more changes in an effort to shift to a more traditional carrier.
Oddly, it isn’t planning on adding a first class cabin, as JetBlue and Frontier are doing.
It has added more fees, though has avoided adding change and bag fees. Don’t expect that to last.
Last month, the airline laid off employees for the first time in its history.
Over the years, Southwest has devalued the value of its points from 60 per dollar to 86 per dollar.
Now, without warning, they have reduced how many points you earn from flying on paid tickets.
- On typical Wanna Get Away fares, non-elites will now earn 2 points per dollar instead of 6 points per dollar. A-List elites will now earn 2.5 points per dollar instead of 7.5 points per dollar. A-List Preferred elites will now earn 4 points per dollar instead of 12 points per dollar.
- On Wanna Get Away Plus fares, non-elites will now earn 6 points per dollar instead of 8 points per dollar. A-List elites will now earn 7.5 points per dollar instead of 10 points per dollar. A-List Preferred elites will now earn 12 points per dollar instead of 16 points per dollar.
Full-fare Anytime fare earnings remain unchanged. Non-elites earn 10 points per dollar, A-List elites earn 12.5 points per dollar, and A-List Preferred elites earn 20 points per dollar.
On full-fare Business Select fares, earnings will go up. Non-elites will now earn 14 points per dollar instead of 12 points per dollar. A-List elites will now earn 17.5 points per dollar instead of 15 points per dollar. A-List Preferred elites will now earn 28 points per dollar instead of 24 points per dollar.
That is one paltry rebate for Southwest’s typical Wanna Get Away fare. If you value Southwest points at 1.3 cents each, that means earnings have dropped from 7.8% back to 2.6% back.
Worse yet, this was done without warning and will retroactively apply to previously booked travel. If I had previously booked paid Southwest travel, I’d certainly file a DOT complaint about that unfair and deceptive change.
So much for Transfarency. More like Unfareancy.
The most profitable part of airlines these days are their mileage programs, but the constant and no-warning devaluations will eventually kill the golden goose.
What will Southwest downgrade next? Free bags or no change fees on Wanna Get Away Fares? Will they just change the name of their most popular fare to basic economy?
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77 Comments On "[Wanna Get Away Fare Will Be Replaced By Basic Fare; Updated Fare Comparison Chart] OUCH! LUV Lost: Southwest Adding Bag Fees, Basic Economy, Expiring Credits, Dynamic Rewards, Reduced Earnings, And More!"
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On FlyerTalk, we have one report yesterday of earning at the old rate for a pre-existing reservation. We have no reports yet of earning at the new rates. Transparently incompetent execution.
Dan, is there a concern of SW going bankrupt so mileage points and Credit should be used sooner than later?
Nope, they’re too big to fail and miles have never gone away in a Ch 11.
i like the header “luv lost”
Thanks
And why they abandoned nj/phl to Florida beats me
Low yielding routes.
Ugly move (and one of the worst I’ve seen in recent years) They should be getting a serious backlash on this. I just booked with them a few days back and it actually highlights the number of miles you’ll earn with each option. I wonder if there’s really a case for a DOT complaint as I’m sure they’re covering themselves in the fine prints.
Certainly DOT worthy for anyone that loses out on points.
Dan, do you think the DOT will support consumers under the new administration?
Would have to spend $2000 so I could qualify for one way short hop between Southern California and Northern California…No thank you.
Yup, pretty brutal.
The reason why southwest was so successful was because of Herb Kelleher. He was a true visionary that did things differently. He was really shrewd in business.
When Southwest expanded its presence to primary markets it lost touch with what made it a successful airline. The more they make unfriendly customer moves, the less difference they will be from JetBlue, Spirit, and Frontier.
Want to be successful? Let’s do what all the failing airlines are doing.
All true, but they maxed out that business model, so growing required entering major airports.
I think Delta and United has shown that devaluations will not hurt the airline. People look at whatever they get as a free perk. Unfortunately they don’t think like us to sell our spending to the highest bidder
do you think credit card holders will be exempt for bags, as is the case with most paid airline credit cards?
It’s in the post.
2 questions- Do you have to pay with their credit card to get free bags? If husband is a cardholder and flying with me but we use my points will we get free bags?
1. TBD.
2. I would assume so, but TBD.
Will having two credit cards give me two free bags?
No
I still have credit from the Pixel deal about five years ago. Is that credit (old) expiring? Thanks!
Non-expiring credits won’t expire.
It’s interesting that they say awards will be dynamic pricing on top of being linked to the fare price – since a higher fare price is already taking into account the high demand and need for more points already…
Indeed.
Hope they don’t change the unaccompanied minor fee/age
This much is certain, there are no more sacred cows at Southwest.
The worst is no more free flight changes with basic economy.
Will the free cancellation policy change?
See the latest post update.
OMG! I was a huge loyalist. That’s definitely changing now
Dan or any folks happen to know if a companion who has its CC will get a refund for 1 checked bag with the purchase? the companion pass holder doesn’t have its CC
TBD.
Ouch, I really believe that this will be the end of SW if they go down this route. If they become just another legacy carrier, then why would anyone choose them over AA, UA, and the others, who have much better routes, lounges, airports, etc.?
Very tough road ahead for them.
You shared that Basic fares can’t be changed, but can be canceled for credit that will expire just 6 months from the date of original ticketing. Do we know if award ticket bookings can be changed or cancelled?
I asked them several questions, including that, but haven’t gotten a response to that one yet.
I’m hopeful that award tickets can at least be cancelled, because based on the chart, it seems that even basic fares can still be cancelled (as opposed to changed).
Just got the answer, added to the post along with some other details.
Thank you. The bottom line is that as long as you’re a card holder and book with rapid rewards, The changes aren’t that awful. question will be about the mileage redemption, especially last minute flights
Right, I’m expecting some major devaluations of points value there, but TBD.
What about getting travel credits via Amex airlines fees? Would those also expire?
Yes, as of new tickets bought from 5/28.
It sounds from this like they wouldn’t issue flight credits for basic fares if the prices go down after booking, like they do today. Is that your read too?
I would assume you can cancel and rebook and have the remaining flight credit for the difference until 6 months from the original booking date.
Good point, I suppose you can cancel and rebook. Slightly less convenient than changing because your PNR would change but not a huge deal. Ouch about the 6 months though.
Would you have to use the card to purchase a ticket to get the free bag or is just having it enough?
TBD. Bag fee details will be announced by the end of April.
Are wanna get a way fares taxes fully refundable if using a cc and what about a gc?
No, same rules as the rest of the fare.
RIP Southwest
Woe, I think this marks the end of an era. I believe southwest was the last domestic airline to not charge any baggage fees for 2 bags.
LUV has been seriously lagging on profits and market share. Their old model just doesn’t work in the “the value of airlines is the points program and credit card partnership era” that we are in today.
They have high labor costs and low yields. Lack of baggage fees and reserved seating has cost them $2-3B/year in revenue.
The model of hauling a cheapskate family with 4 kids and 12 bags on lowest fare tickets with no ancillary revenue is absolutely dead. Those people were hugely subsidized by business travelers buying next day direct fares – a large portion of those business travelers have disappeared.
Perhaps, but why are they going to fly Southwest after 5/28 vs anyone else?
And how are they going to compete for business/premium passengers without a first class cabin?
I think that the whole US LCC model is broken and marginally profitable at best. JetBlue, Spirit, Frontier, and now Southwest – all struggling big time. All of those airlines made their $$ by small/medium business travel booking close in for 25-50 cents on the $$ as the full service carriers. Business travel is down and especially hard hit among the typical pre-pandemic LCC business customer.
They are not subsidizing other people’s cheap travel anymore. SW and a few others will go chapter 11 and will merge or get scooped up by full service carriers.
Basically Southwest is intent on becoming just another airline…
I’m no expert but I’ll guess they’ll see a significant drop in non-direct bookings. I don’t think people will tolerate the stopovers without the Southwest perks
Hi Dan, Do you know, will existing flight credits start clock ticking to 12 months expire? Or still good indefinitely, as they are now for funds already sitting there? Thanks
Indefinitely.
Wow! this kills the outsize value SWA has provided over the years. It will also increase the costs of flights by 30=40% ( i’d guess; for my use case) The biggest things is that this kills the 1.4C minimum value it was easy to achieve with Chase points.
My problem is that as BWI is our home airport so we don’t have many options to switch to.
Why does it kill the Chase points value?
Having 1.4 as a base meant supremely usable points with no added costs of time (more on that later) I could accrue with 5x on the flex and for promotions, sign up bonuses, and the occasional referral credit.
I know things are different for you because you value international business flights; you are not alone in that.
My personal marginal utility from business class is limited (a whole sugya…..).
Award space can be hard to find and dealing with transfer times, booking over the phone, and positioning flights as well as flight changes (especially with EY trips) that obviate the value of: transfer options, optimal stopovers, and metal all eat into the outsize value of business redemptions.
I live in BWI so my domestic redemption options are limited. Traveling to Philly to save 50-100 per flight per pax with amex-HA-Alaskan-AA magic just doesn’t make sense.
Waiting around for a particular combination of dates, itinerary, stopovers, connections, and destinations like with Delta’s amazing award sales just does not work for me given my schedule and flying to a place I have only marginal interest in to pay all sorts of ancillary costs like hotel, ground transportation and expensive excursions or attractions means that any upfront savings is eaten up on the back end; even for economy redemptions.
Having the option of flexible, low hassle, points that were usable all the time for me or family members meant very little friction was eating into their value.
That is just me, my use cases and my preferences.
I don’t expect massive changes for Southwest redemptions.
Plus, there’s more value now as the points are refundable, even on basic fares.
Wouldn’t the Dynamic pricing kill that? Most people are flying to places like miami, cancun, bahamas where demand is higher
Demand isn’t destination based, it’s flight-based.
Airlines don’t fly routes without demand.
So not sure i understand….which routes would then be considered high demand?
It’s not based on the route, it’s based on how full the flight is.
Meaning booking early on when the flight is emptier should be less points even though the flight might be more expensive at that time dollar wise, than lets say 2 months later if the price drops but more seats were taken
It’s far too early to know how the pricing algorithm will work, but we’ll be watching it.
I will also miss the days of placeholder mileage itineraries. It was so nice to be able to snag a good deal for a family member and have unlimited flexibility.
Its good I used up 250K SW points the last year or 2.
When they inevitably limit carry-ons alongside checked bags, we will really be stuck when traveling with kids and having to limit conveniences like portable cribs, carry on strollers, cars seats and all the other luxuries that made vacationing or family visits manageable or halfway pleasant. At least without shelling out more money to SWA or renting.
First world problems.
If we all move to eretz yisrael we wont need to fly as much. hmm…
I am an A-list member, and also have 2 personal Southwest credit cards, as well as 1 Southwest business card. Under your new baggage policy commencing on reservations booked 5/28/2025 or after, am I entitled to more than one free bag?
No, those benefits don’t stack with any airline.
I would not be surprised if one of the other low cost carriers takes their place and starts offering free bags/changed etc.
@Dan do you think they are slimming down their basic economy product to compete on up-front price with Spirit and Frontier in big leisure markets such as MCO, FLL, LAS?
Do you think just the cardholder gets a free bag or everyone on the itinerary?
I’d assume everyone. TBD.
I am very disappointed by the changes Southwest is about to make I loved traveling with them because of the free bags no change fee and open seats now they are taking that away which makes them no different from the other airlines they may be loosing me very disappointed