Southwest Airlines announces major revamp for credit cards

Over the previous yr, Southwest Airways has made main modifications to its enterprise mannequin, from ending open seating to adding checked bag fees and revamping elements of its Speedy Rewards loyalty program.

Up subsequent? A major refresh of its bank cards lineup.

The Dallas-based service introduced on Thursday it is including new perks to every of its Chase cobranded playing cards. The newly-revealed advantages embrace methods to earn bonus factors on restaurant, grocery and gasoline purchases.

And, as TPG first reported in April, sure Southwest cardholders will get complimentary entry to its brand-new further legroom seats.

However the modifications will come at a hefty price ticket for brand spanking new and present cardholders. Annual charges on every Southwest card are set to rise sharply, with common price hikes hovering round 50%.

That mentioned, there is a main deal sweetener for vacationers who add a Southwest card to their wallets: Between now and Sept. 17, new candidates for any of its private playing cards can earn 100,000 Speedy Rewards factors after spending $4,000 on purchases throughout the first 5 months.

“We consider that our present cardmembers in addition to the brand new cardmembers will see the actual and measurable worth that the advantages convey, in addition to elevated flexibility and elevated selection,” Corbitt Burns, Southwest managing director of cobrand and funds, advised TPG in an interview this week.

This is what to know concerning the overhaul to the airline’s card lineup, together with new advantages, disappearing perks and those which can be sticking round.

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Present Southwest Speedy Rewards Cardmembers’ annual charges will alter on their 2026 Anniversary date.

The price hikes come as a slew of bank card issuers have raised annual dues on playing cards over the previous yr (or plan to quickly), significantly on the extra premium finish of the spectrum. Within the case of Southwest’s portfolio, Chase attributed the hikes to new advantages and the passage of time.

“That is the primary time, in some instances, that we’re rising the price in a decade,” Chris Cracchiolo, president of cobranded playing cards at JP Morgan Chase, advised TPG. “We consider strongly that we’re pricing for worth, and we predict the incremental advantages on the cardboard merchandise justify the modest price will increase.”

Associated: Best time to apply for Southwest Chase cards based on offer history

For context, Southwest now prices clients $35 for his or her first checked bag, after implementing fees in late Might.

Associated: These 26 credit cards can get you free checked bags on your next flight

Seating advantages

All cardholders will probably be allowed to pick out a seat in some capability, even when they’re flying on a fundamental fare (which recently replaced Southwest’s well-known “Wanna Get Away” tickets). However the seating advantages enhance as you take a look at playing cards with greater annual charges.

Plus, as TPG first reported this spring, Southwest Speedy Rewards Precedence and Efficiency Enterprise cardholders will probably be allowed to pick out the airline’s further legroom seats inside 48 hours of departure for gratis (if seats can be found).

Like with luggage, the seating advantages for every card will apply for the first cardholder and as much as eight companions flying on the identical reservation.

New bonus spend classes

Southwest additionally made massive modifications to the variety of factors clients can earn on on a regular basis purchases.

Bonus spend classes for native transportation, commuting and ride-hailing companies will disappear for many playing cards in 2026. So will bonus factors for purchases like web, cable and cellphone companies on most playing cards. As a substitute, efficient instantly, you will see the airline reward clients extra for eating, grocery and gasoline purchases.

Cracchiolo mentioned this shift provides cardholders “far more utility” to earn factors for his or her subsequent redemption. “We’re fairly assured they’ll resonate with each new clients and present clients,” he mentioned.

Nevertheless, we should always be aware: some playing cards have limits on what number of bonus factors clients can earn in these new classes. Precise particulars beneath.

Associated: Your ultimate guide to Southwest credit card eligibility

Boarding perks

As Southwest revamps its boarding procedures with a course of that appears much more like its rivals (farewell to lining up on the gate!) the airline plans to supply earlier boarding to Speedy Rewards members who carry its playing cards.

These vacationers will board no later than Group 5, forward of normal boarding. Southwest’s new boarding course of will embrace a complete of eight teams.

Sooner observe to A-Record

Additionally, Southwest will give some cardholders a sooner observe to A-List elite status than they’ve as we speak, with extra Tier Qualifying Factors earned on card spending.

What is going on away?

Together with phasing out some present bonus spend classes, Southwest’s card lineup will lose among the advantages that had been particular to its outgoing open seating mannequin and single-file boarding course of, such because the EarlyBird and Upgraded Boarding perks at present supplied with some playing cards.

Present cardholders can have via the top of the yr to make use of these advantages earlier than they disappear.

Associated: Companion Pass and bonus points: Comparing the Southwest Rapid Rewards Priority, Premier and Plus credit cards