Revised airline redemption policy by Southwest Airlines: Enhancements to cash and points redemptions now in effect, beneficial to customers.
In a significant move, Southwest Airlines is set to overhaul its Rapid Rewards program in 2025, with the most notable change being the introduction of dynamic pricing for award redemptions. This shift from the previous fixed-point redemption model will see the number of points required for a flight fluctuate based on demand, similar to cash fare prices.
The new dynamic pricing system is part of a broader program update that includes the replacement of the Wanna Get Away fares with a new Basic fare category. This fare will earn fewer Rapid Rewards points per dollar spent (2 points) compared to other fare types, potentially slowing down the pace at which points accumulate for redemption.
Other changes to the Rapid Rewards program include the introduction of flight credits with expiration periods, the discontinuation of the free two-bag policy for most passengers, and the introduction of seat assignments and extra-legroom seating in 2026.
Since dynamic pricing directly affects how points are redeemed alongside cash, it effectively alters the cash + points redemption structure by making it more variable and aligned with fare prices. This means travellers should expect more variability and potentially higher points costs for rewards depending on flight availability and fare class in 2025.
To maximize value under the new structure, it will be important to monitor fares closely and consider the impact of the Basic fare's lower points earnings.
Southwest Airlines currently offers several credit cards, including the Capital One Venture X Rewards Credit Card, The Platinum Card® from American Express, and the Chase Sapphire Reserve®. These cards offer various rewards, such as earning 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
From 4 a.m. EST on Jan 1, 2025, customers can start earning Rapid Rewards points for the paid portion of their cash-and-points bookings. These points will also contribute towards A-List and A-List Preferred elite status through the cash portion of these bookings. Qualifying credit towards Southwest's Companion Pass will also be earned from these cash-and-points bookings.
Travellers are advised to stay informed about these changes to plan and use their Rapid Rewards points effectively under the new structure.
- In 2025, Southwest Airlines will revamp its Rapid Rewards program, featuring dynamic pricing for award redemptions.
- This overhaul will replace the fixed-point redemption model, creating variable point requirements for flights based on demand, mirroring cash fare prices.
- The new dynamic pricing system will be accompanied by the discontinuation of the Wanna Get Away fares and their replacement with a Basic fare category that earns fewer Rapid Rewards points per dollar spent.
- Other alterations to the program include flight credits with expiration periods, the discontinuation of the free two-bag policy, and the introduction of seat assignments and extra-legroom seating in 2026.
- Travellers need to closely monitor fares and weigh the impact of the Basic fare's lower points earnings to maximize value under the new structure.
- Southwest Airlines offers various credit cards, such as the Capital One Venture X Rewards Credit Card, The Platinum Card® from American Express, and the Chase Sapphire Reserve®, which provide rewards for spending in dining and travel categories.
- From January 1, 2025, customers can begin earning Rapid Rewards points for the paid portion of their cash-and-points bookings, contributing towards elite status and Companion Pass qualification.
