Ch-ch-ch-ch-changes for Southwest

If you've heard about impending Southwest Airlines changes and have been meaning to book a Southwest flight for sometime between now and 1/26/26 (what the current calendar is open through currently), here's why you may want to consider booking today. I'm not going to hit all of the nuances, but will cover some of the "major" changes, which will go into effect tomorrow, May 28th, 2025.

Southwest Policy Changes

The biggest change that has caused an uproar initially is that you no longer get 2 Free Checked Bags per Customer, however, if you a flight reservation that you've already made that flies after today, you'll still get your free bags. If you have a flight booked for yourself, but have not added a companion yet, you (primary flier) will still get two free checked bags, but if you add your companion after today, they won't. First bag will be charged at $35.

Buuuuut, not all is lost. If you have ANY Southwest credit card, then you and up to eight guests on your same reservation, will each get one free bag for flights booked after today, that utilize the credit card to pay fees/taxes at a minimum.  Honestly - we don't fly Southwest places where we need more than one checked bag per person, so this policy change doesn't have a huge impact to me personally.

Source: Southwest

Before you run out and sign up for a Southwest credit card right now... remember, if you're interested in earning a Southwest Companion Pass (SW CP), which gives you buy one, get one free cash or points flights for the remainder of year you achieve the bonus and the entire following year,  there is a timing strategy to open one or more card (typically 2 cards) in a calendar year; or at least time these cards so that the sign up bonuses hit in the same calendar year to earn a SW CP. Most people try to maximize this by opening Southwest cards at the END of the year. I'll hit on this more in a future post, but hold off on that Southwest card for now (or reach out if you want help strategizing the timing to earn SW CP).

Flexibility with Cheapest Fare is Leaving. Currently SW has 4 fare classes and all of them offer flexibility to cancel or change a flight with no fees. This has been extremely convenient because flight prices (cash or points), can be volatile and change. Southwest allows you to receive a credit if you notice that your flight dropped in price after you booked (see reel here showing how).

Moving forward, Southwest is creating a Basic Fare, which does not allow flexibility to change existing flights. However, you'll still be able to cancel a Basic Fare flight, and rebook if you see the price drop. However, when you cancel, you will not receive a cash refund. Your cash/points will stay within Southwest.

If you want the ability to change a reservation, then you'll need to have a Wanna Get Away Plus, Anytime, or Business Select fare. You can also upgrade from Basic Fare to one of those listed above.

Flight Credits are changing. Any flight credit issued before 5/28/25 will not expire. However, moving forward flight credits WILL expire within one year or less of issuance. The length of a flight credit's validity will depend on the fare type purchased.

If you currently have a flight credit to use, and use it after 5/27/2025 and later need to cancel that reservation, that flight credit will have an expiration date.

Earned Rapid Rewards for Paid (Cash) Flights are decreasing. Honestly, again, this isn't part of my household's strategy - earning RRs by paying for flights, but if you count on this, it's something to be aware.

Here's Southwest's summary card for new fare classes and benefits:

Really for us, since we both hold a SW credit card and primarily fly SW with points bookings; these changes don't yet seem too detrimental, that we will continue to fly Southwest. However, I'm curious to see if the rules for companion pass will be impacted in the future - which would change our strategy. What about you? How do you feel about these changes?