Southwest Airways publicizes main revamp for bank cards

Over the previous yr, Southwest Airways has made main modifications to its enterprise mannequin, from ending open seating to including checked bag charges and revamping points of its Speedy Rewards loyalty program.

Up subsequent? A major refresh of its bank cards lineup.

The Dallas-based provider introduced on Thursday it is including new perks to every of its Chase cobranded playing cards. The newly-revealed advantages embrace 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 modifications will come at a hefty price ticket for brand new and present cardholders. Annual charges on every Southwest card are set to rise sharply, with common price hikes hovering round 50%.

That mentioned, 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 Speedy Rewards factors after spending $4,000 on purchases inside 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 alternative,” Corbitt Burns, Southwest managing director of cobrand and funds, informed TPG in an interview this week.

This is what to know in regards to the overhaul to the airline’s card lineup, together with new advantages, disappearing perks and those which are sticking round.

Greater annual charges

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

Current Southwest Speedy Rewards Cardmembers’ annual charges will alter on their 2026 Anniversary date.

The price 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 price 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 price will increase.”

Associated: Finest time to use for Southwest Chase playing cards primarily based on supply historical past

New advantages

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

Free checked bag

Like they do as we speak, 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 costs prospects $35 for his or her first checked bag, after implementing charges in late Might.

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

Seating advantages

All cardholders will probably be allowed to pick out a seat in some capability, even when they’re flying on a fundamental fare (which lately 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 Speedy Rewards Precedence and Efficiency Enterprise cardholders will probably be allowed to pick out the airline’s further legroom seats inside 48 hours of departure without charge (if seats can be found).

Like with baggage, 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 modifications to the variety of factors prospects can earn on on a regular basis purchases.

Bonus spend classes for native transportation, commuting and ride-hailing providers will disappear for many playing cards in 2026. So will bonus factors for purchases like web, cable and cellphone providers on most playing cards. As a substitute, efficient instantly, you will see the airline reward prospects extra for eating, grocery and fuel purchases.

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

Nevertheless, we must always notice: some playing cards have limits on what number of bonus factors prospects can earn in these new classes. Precise particulars beneath.

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 Speedy Rewards members who carry its playing cards.

These vacationers will board no later than Group 5, forward of ordinary boarding. Southwest’s new boarding course of will embrace a complete of eight teams.

Quicker monitor to A-Listing

Additionally, Southwest will give some cardholders a quicker monitor to A-Listing elite standing than they’ve as we speak, 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 the moment supplied with some playing cards.

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

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

Southwest Airways bank card advantages

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

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

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, Speedy 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 provider’s most cost-effective (Primary) fare.

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

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

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

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