Major Southwest Credit Card Changes: Higher Fees, New Benefits

Southwest Rapid Rewards and Chase have a suite of co-branded credit cards. Well, these cards are getting a complete overhaul — we’re seeing annual fees increase, though we’re also seeing new benefits added.

The timing of this announcement isn’t surprising, given that changes that Southwest is undergoing. With the airline having introduced bag fees, and soon planning on introducing assigned and premium seating, and new boarding groups, there obviously needs to be an update to the core benefits of the card.

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Southwest credit card annual fees increasing

Let’s start with what’s unarguably bad news. The annual fees on all Southwest credit cards are increasing, ranging anywhere from 43-54%:

• The Southwest Rapid Rewards Plus Card annual fee is increasing from $69 to $99
• The Southwest Rapid Rewards Premier Card annual fee is increasing from $99 to $149
• The Southwest Rapid Rewards Priority Card annual fee is increasing from $149 to $229
• The Southwest Rapid Rewards Premier Business Card annual fee is increasing from $99 to $149
• The Southwest Rapid Rewards Performance Business Card annual fee is increasing from $199 to $299

These new annual fees apply effective immediately for new cardmembers, and as of the 2026 renewal date for existing cardmembers.

Southwest credit card bag, boarding, and seating perks

We’ve already known most of this, but all Southwest credit cards are getting perks that align with Southwest’s new business model. Regardless of which of the cards you have:

• Cardmembers and up to eight companions on the same reservation receive a first checked bag free
• Cardmembers and up to eight companions on the same reservation receive Group 5 boarding (there are a total of eight groups)

Cardmembers can also receive complimentary seat selection, for themselves and up to eight companions on the same reservation. The seating you have access to depends on which card you have:

• The Southwest Plus Card offers standard seat selection 48 hours before departure
• The Southwest Premier Card and Southwest Premier Business Card offer standard or preferred seat selection 48 hours before departure
• The Southwest Priority Card and Southwest Performance Business Card offer standard or preferred seat selection at booking, and extra legroom seat selection 48 hours before departure

Southwest credit cards receive other new perks

Beyond the above, Southwest credit cards are getting a slew of new perks and bonus categories:

• The Southwest Plus Card no longer has foreign transaction fees, earns 2x points on gas station and grocery purchases (up to $5,000 in combined purchases per year), and offers a 10% promo code for a flight discount each anniversary year, excluding basic fares
• The Southwest Premier Card earns 2x points on grocery and restaurant purchases (up to $8,000 in combined purchases per year), and offer a 15% promo code for a flight discount each anniversary year, excluding basic fares
• The Southwest Premier Business Card earns 2x points on grocery and restaurant purchases (up to $8,000 in combined purchases per year)
• The Southwest Priority Card and Southwest Performance Business Card earn 2x points on gas station and restaurant purchases with no caps, and 2,500 tier qualifying points toward A-List status for every $5,000 spent annually

The cards are keeping existing perks like anniversary bonus points, and 25% savings on inflight purchases.

My take on these Southwest credit card changes

The changes to Southwest’s credit card portfolio are more or less what you’d expect, given how the airline is evolving. The way I view it:

• These cards probably aren’t worth having just for the perks, assuming you’re not a frequent Southwest flyer
• If you do fly Southwest multiple times per year, it probably makes sense to have a co-branded Southwest credit card
• The more frequently you fly Southwest, the more premium of a card you should consider picking up, as the value will add up
• At the same time, if you fly Southwest very frequently and automatically earn A-List or A-List Preferred, odds are that the additional perks like extra legroom seating won’t actually be worth all that much
• The Southwest Priority Card has really lost a lot of value, as it doesn’t get an anniversary discount credit, and also loses its $75 annual Southwest credit

Perhaps the bigger question that many consumers will have is whether it’s still worth being loyal to Southwest, with everything that has changed. Ultimately Southwest has a huge network, so I imagine that’s a primary motivator for why people will continue flying with the airline.

Bottom line

Southwest Airlines has overhauled its credit card portfolio, coinciding with the carrier changing its policies around bags, seating, and boarding. The changes are a mixed bag, with card annual fees increasingly considerably, but the cards do also receive new benefits.

I don’t have terribly strong opinions on these changes. I think on balance they’re probably negative compared to the previous value proposition, but with Southwest has changed its business model, obviously the cards needed to evolve as well.

What do you make of these Southwest credit card changes?