Southwest Airlines Announces Strategic Changes, Moving Away from Its "No-Frills" Model
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Southwest Airlines has unveiled a series of strategic changes aimed at boosting revenue and expanding travel options for passengers. Under the firm direction of Elliott Management, the airline is focused on improving cash flow, marking a shift from the "no-frills" model that made it iconic.
New Baggage Policy Starting May 28, 2025
Beginning May 28, 2025, Southwest will continue to offer two free checked bags only for:
- Rapid Rewards A-List Preferred members
- Passengers flying on Business Select fares
Meanwhile:
- A-List members and select customers will receive one free checked bag.
- Rapid Rewards credit cardholders will receive a credit for one checked bag.
- All other passengers will be required to pay for their first and second checked bags, subject to weight and size restrictions.
Changes to the Rapid Rewards Program
Southwest has adjusted the number of Rapid Rewards points earned on eligible flights:
- Business Select fares will now earn more points.
- Wanna Get Away and Wanna Get Away Plus fares will have reduced benefits.
- Redemption rates will become variable, fluctuating based on flight demand.
New Basic Fare and Expanded Booking Options
To attract price-sensitive travelers, Southwest will introduce a new basic fare option for tickets purchased starting May 28, 2025. Additionally, the airline is preparing to roll out assigned seating and extra-legroom options.
As part of its expansion strategy, Southwest began offering reservations through Expedia in February 2025.
Flight Credit Validity and Operational Performance
- Flight credits issued for tickets purchased on or after May 28, 2025, will be valid for up to one year from the date of issuance, depending on the fare type.
- Southwest is advancing its rollout of assigned seating and extra-space options.
- Since February 13, 2025, the airline has partnered with Icelandair and launched its first scheduled overnight flights.
Southwest Leads the Industry in Punctuality
Operationally, Southwest is leading the industry in on-time performance in 2025, with a 98.3% schedule completion rate and zero cancellations, reflecting a year-over-year improvement.
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