Southwest Airlines is undergoing major changes this week, in an effort to boost its profitability. Yesterday, the airline started charging for checked bags, but that’s not the only major policy change that has been implemented as of this week.
In this post:
Southwest flight credits are no longer valid forever
Southwest has long been known for its customer friendly policies. Back in the day, Southwest had no change fees on tickets, even when the competition did. That meant you could book a Southwest ticket without worry, and if you couldn’t take the trip, you’d be issued a flight credit for a future trip.
However, at the start of the pandemic, we saw many other airlines introduce a similar policy, to reflect the situation, and evolving consumer behavior. So in 2022, Southwest one-upped the competition.
The airline changed its policy so that flight credits would no longer expire. Up until that point, Southwest flight credits expired one year after they were issued, but Southwest once again wanted to find a way to differentiate itself.
Well, that’s now no longer the case. For tickets issued as of Wednesday, May 28, 2025, Southwest flight credits once again expire:
- On Basic fares, Southwest flight credits expire six months after a ticket is issued
- On Wanna Get Away Plus, Anytime, and Business Select fares, Southwest flight credits expire 12 months after they’re issued
Let me emphasize that those expiration dates are in relation to when a ticket was initially issued, and travel has to be completed within that timeframe. That means if you book a Basic ticket nearly six months out and then need to cancel, you’ll have very little time to use your flight credit.
Furthermore, I should mention that flight credits issued prior to May 28 should continue to have no expiration date, in line with the old policy.
This policy shift aligns Southwest with the competition
For so long, Southwest did its own thing, regardless of what the competition was doing. However, with Southwest having activist investors in the form of Elliott Investment Management, the mandate is clear — be just like all the other guys, and somehow that will be the key to profitability.
While I do think there are some areas where Southwest needed to evolve (like introducing premium seating options), I really don’t understand the extreme to which this is being taken.
I get the desire for ancillary revenue and finding ways to generate easy cash, but without the ability to establish a revenue premium in domestic economy, I’m not sure how that’s supposed to result in industry leading profitability, especially when Southwest doesn’t have first class or long haul aircraft, which are the areas where carriers like Delta and United are generating much of their revenue…
Bottom line
For tickets issued as of May 28, 2025, Southwest Airlines flight credits once again expire. They expire after 12 months for most fares, while they expire after six months for the carrier’s new basic economy fares. Since 2022, Southwest has been leading the industry by having flight credits not expire, and now that has been reversed.
What do you make of Southwest flight credits expiring once again?
The 6 month expiry from the time the ticket was issued is basically a scam and is nothing more than a pure 'screw you' to customers. I too don't understand how Southwest is supposed to return to major profitability by getting rid of everything that made them unique and that most customers loved and replacing those things with the most-hated features of other domestic airlines. I am not a frequent traveler; I make only 4-6...
The 6 month expiry from the time the ticket was issued is basically a scam and is nothing more than a pure 'screw you' to customers. I too don't understand how Southwest is supposed to return to major profitability by getting rid of everything that made them unique and that most customers loved and replacing those things with the most-hated features of other domestic airlines. I am not a frequent traveler; I make only 4-6 round trips per year on average. Still, I looked at my records and for the last 7 years, and I took almost 89% of my flights in those 7 years with Southwest, primarily due to them not nickel and diming customers for every little thing. Now I have absolutely no reason to prefer Southwest at all. I live within 50 minutes of two major US airports. From now on, whichever airline and whichever airport offers the best (i.e., cheapest) airfare for my particularly itinerary gets my money.
It appears that the flight credits expire 6 months (Basic) and 12 months (Wanna Get Away Plus) after the ISSUE date. Which means that if you are the type to book flights well in advance, the "credit" for a Basic flight would not even be able to be used if you booked more than 6 months in advance. This is huge downgrade and another reason to break my loyalty to Southwest
With all the changes, the only reason to fly SW instead of any other airline is the companion pass. It still amounts to a huge saving for my wife and me -- especially since, (unlike Alaska), the primary flyer can use points. That way we both can basically fly free!
I will rarely fly Southwest going forward and I will use points if I should
Why would I use revenue and then worry if my credit expires at all?
I’m sitting on millions of points with Chase but typically use them for hotels or when a point transfer bonus arises for an airline
Hey Ben, don't know if you've seen this video from Wendover Productions uploaded today about what's going on at Southwest recently. He's a YouTuber that seems to have a particular affinity for aviation, and you've linked to a few of his videos from his sister channel, Half as Interesting, in the past. It doesn't really tell us anything new or what you haven't covered before, but covers it all in a succinct, approachable way. https://www.youtube.com/watch?v=BD-rLIz9XUo
Hey Ben, don't know if you've seen this video from Wendover Productions uploaded today about what's going on at Southwest recently. He's a YouTuber that seems to have a particular affinity for aviation, and you've linked to a few of his videos from his sister channel, Half as Interesting, in the past. It doesn't really tell us anything new or what you haven't covered before, but covers it all in a succinct, approachable way. https://www.youtube.com/watch?v=BD-rLIz9XUo
This will be a fantastic case study for investors and corporate leadership alike in this tight-margin, cyclical industry. SW is basically throwing away their value props and trusting that brand loyalty, footprint/route and customer experience will keep them in competition. Quite a gamble.
Seems very New Coke to me but in this short-attention-span world, you can walk back dumb decisions more easily than ever. So, why not shoot the moon with your board and...
This will be a fantastic case study for investors and corporate leadership alike in this tight-margin, cyclical industry. SW is basically throwing away their value props and trusting that brand loyalty, footprint/route and customer experience will keep them in competition. Quite a gamble.
Seems very New Coke to me but in this short-attention-span world, you can walk back dumb decisions more easily than ever. So, why not shoot the moon with your board and stock price breathing down your neck?
what about existing Credits?
Are any of the benefits that go with the Chase-Southwest credit card(s) going to change?
Cranky Flier noted that Basic fares are the same as WGA for a downgraded product. I would expect WN to have to discount Basic since its lacks most of the perks that came with WGA. Will be curious how WN sales are affect and it adjusts.
Southwest is trually now algned with other major carriers. Except for the lack of lounges near its gates at many terminals and meal service and ...
How many paxs flying economy use a lounge?
To quote the Linked-in obsessed corporate weasel from Elliott Investments, upon laying eyes on WN: "Burn it down...burn it all down!"
Another super important thing to note- any changes made to already booked reservations prior to May 28th will take on the new fare rules. So, if you adjust a previously Wanna Get Away Fare to Basic for a flight credit, or to a higher fare class, the new fare rules will take effect and those credits will also have expiry.
The new checked bag fare rules will also take effect on any changes made from...
Another super important thing to note- any changes made to already booked reservations prior to May 28th will take on the new fare rules. So, if you adjust a previously Wanna Get Away Fare to Basic for a flight credit, or to a higher fare class, the new fare rules will take effect and those credits will also have expiry.
The new checked bag fare rules will also take effect on any changes made from already booked tickets. $35 for 1st bag and $45 for 2nd bag, unless A List, A List Preferred, or a SW co-branded card holder.