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| Southwest changes |
| by Brian Kelly |
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It’s 2025 and we’re used to airline changes and devaluations at this point, but usually, it’s death by a thousand cuts over a long period of time.
When Delta Air Lines made changes to lounge access and elite status thresholds, it was met with consumer backlash, but never have I seen such a drastic change in an airline’s core identity as I have the past two weeks with Southwest Airlines.
Last week, it stealthily devalued the number of points you earn on Wanna Get Away fares from 6 points per dollar spent to 2 — a huge reduction with no notice, which is so unlike Southwest. This week, the airline made an announcement that will essentially undo almost everything that made Southwest what it was. Starting May 28, it’s removing free checked bags for most passengers, adding expirations on vouchers and rebranding its lowest fare class as a true basic economy option. And soon, Southwest will be boarding like other airlines with assigned seating.
So essentially, Southwest Airlines will be just like the Big Three airlines, but with a few huge exceptions — it doesn’t have the international route map or inflight experience others do, it lacks free Wi-Fi, and there are no inflight entertainment screens. And now, on top of that, there are no free checked bags for most everyday travelers — plus significantly less flexibility, since the lowest fare class no longer includes flight changes or same-day standby benefits, all of which were hallmarks.
One glimmer of hope is that Southwest didn’t announce changes to its Companion Pass, one of the most valuable perks in the airline loyalty world. I hope Southwest leaves that intact for its most loyal members, but given its rampage to cut costs and benefits, I wouldn’t be shocked if the pass eventually is devalued or axed altogether.
So what does Southwest Airlines stand for these days?
Certainly, people will fly the airline when it is the best option on any given route, but Southwest is walking into uncharted territory, especially since Delta announced its quarterly earnings this week and slashed the outlook for the rest of the year. We’ve seen the stock market in correction territory, and there’s a lot of uncertainty around consumer prices and tariffs. Frankly, consumer wallets could tighten a lot this year.
Do I think it’s wise to completely undo the airline’s key differentiators for customers in one week? I personally don’t. I understand the pressure Southwest is under to deliver for Wall Street, and the stock price did edge up a little bit, but I think there will be some tough times ahead for the airline. It remains to be seen.
Will consumers actually leave and fly other carriers? Some may leave for other elite status programs that deliver more benefits from a loyalty perspective. These other elite status programs will upgrade you to first class and have international route networks and partners. Consumers will have to start asking themselves, “Why pay for Southwest when I get a whole lot more for the same price or even less on another carrier?”
Safe travels,
BK
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| Photo Credit: JONNO RATTMAN. |
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