Southwest Airways publicizes main revamp for bank cards

Over the previous yr, Southwest Airways has made main adjustments to its enterprise mannequin, from ending open seating to including checked bag charges and revamping features of its Fast 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 embody methods to earn bonus factors on restaurant, grocery and fuel purchases.

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

However the adjustments 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 charge hikes hovering round 50%.

That stated, 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 Fast Rewards factors after spending $4,000 on purchases throughout the first 5 months.

“We imagine 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, informed 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 might be sticking round.

Increased annual charges

Let’s get the dangerous information out of the way in which first. Every of Southwest’s 5 bank cards will see an annual charge hike as a part of this card suite refresh:

Current Southwest Fast Rewards Cardmembers’ annual charges will regulate on their 2026 Anniversary date.

The charge hikes come as a slew of bank card issuers have raised annual dues on playing cards over the previous yr (or plan to quickly), notably 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 charge in a decade,” Chris Cracchiolo, president of cobranded playing cards at JP Morgan Chase, informed TPG. “We imagine strongly that we’re pricing for worth, and we predict the incremental advantages on the cardboard merchandise justify the modest charge will increase.”

Associated: Finest time to use for Southwest Chase playing cards based mostly on provide historical past

New advantages

Southwest’s card lineup will see a spread of recent advantages which, typically, have been redesigned for an airline that — by January — will look loads completely different than it did a yr in the past.

Free checked bag

Like they do right now, Southwest cardholders will get their first checked bag free on every of the airline’s playing cards. This profit will apply to the first cardholder and as much as eight vacationers flying on the identical reservation.

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

Associated: These 26 bank cards can get you free checked luggage in your subsequent flight

Seating advantages

All cardholders will probably be allowed to pick a seat in some capability, even when they’re flying on a fundamental fare (which not too long ago changed Southwest’s well-known “Wanna Get Away” tickets). However the seating advantages enhance as you have a look at playing cards with larger annual charges.

Plus, as TPG first reported this spring, Southwest Fast Rewards Precedence and Efficiency Enterprise cardholders will probably be allowed to pick 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 huge adjustments 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 telephone companies on most playing cards. As an alternative, efficient instantly, you may see the airline reward clients extra for eating, grocery and fuel purchases.

Cracchiolo stated this shift offers cardholders “way more utility” to earn factors for his or her subsequent redemption. “We’re fairly assured they are going to resonate with each new clients and present clients,” he stated.

Nonetheless, we should always word: some playing cards have limits on what number of bonus factors clients can earn in these new classes. Precise particulars under.

Associated: Your final information to Southwest bank 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 Fast 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 embody a complete of eight teams.

Sooner monitor to A-Checklist

Additionally, Southwest will give some cardholders a quicker monitor to A-Checklist elite standing than they’ve right now, 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 provided with some playing cards.

Current cardholders could have by the top of the yr to make use of these advantages earlier than they disappear.

Associated: Companion Cross and bonus factors: Evaluating the Southwest Fast Rewards Precedence, Premier and Plus bank cards

Southwest Airways bank card advantages

There are a handful of extra perks that Southwest and Chase are including — or reducing — as a part of this general refresh.

This is the breakdown of Southwest’s new bank card advantages and charges.

Shopper playing cards

Enterprise playing cards

Backside line

Southwest’s bank card revamp will imply larger annual charges and the top of some perks that had been particular to its longstanding open seating setup.

Now, a new-look airline has ushered in a new-look card lineup, with first-time rewards like further legroom seat entry.

Going ahead, Fast Rewards flyers who carry Southwest’s playing cards will be capable of sidestep among the airline’s latest hurdles, just like the bag charges and seat choice limitations now dealing with passengers who buy the service’s least expensive (Fundamental) fare.

That is by design: Southwest leaders have stated, for months, that as a part of the wholesale adjustments on the airline, they hoped to reward A-Checklist members and cardholders — and to entice different clients to hold a card and earn standing.

How clients take to the brand new card tradeoffs stay to be seen, however Southwest is assured concerning the worth proposition it is providing.

“We imagine numerous these [rewards] are unmatched within the {industry}, and industry-leading,” Burns stated.

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