For the past few years, Southwest Airlines has been shedding its reputation as a quirky outsider, eliminating such hallmarks as open seating and free checked bags. Now, its credit cards and rewards program are moving closer to the industry norm.
The airline announced a sweeping set of changes to its Rapid Rewards program, bringing it more in line with those of other major carriers. Even the terminology is becoming more conventional: A new top-tier status, Platinum, will be introduced, A-List Preferred will become Gold, and A-List will become Silver.
Beginning January 1, cardholders will earn one tier-qualifying point for every dollar charged to their cards, including, for the first time, the Rapid Rewards Plus Credit Card. The change will give all Southwest cardholders a new way to reach elite status more quickly.
There is a trade-off, however. Cardholders will no longer earn points toward a Companion Pass with every purchase. Instead, the new Platinum tier will include an unlimited Companion Pass.
Later in 2027, Southwest also plans to introduce redemption options with international airline partners, another feature common among major carriers. Its partners include Icelandair, China Airlines, and Etihad Airways.
Aligning with Industry Changes
Southwest offers five co-branded credit cards through Chase, with annual fees ranging from $99 to $299. The latest rewards changes follow a broader shift in the airline’s business model, as it moves away from policies that once set it apart from competitors.
“Southwest’s open seating policy, dating back to 1971, was unique among airlines, and when it changed its strategy in January 2026, it became clear that more changes were coming,” said Brian Riley, Director of Credit at Javelin Strategy & Research. “As Southwest enters the world of charging for bags like everyone else, cardholders will get free checked bags for themselves and co-travelers. With assigned seating, cardholders will get at least Group-5 boarding and seat selection within 48 hours of departure.”
A Return to Profitability
Southwest’s shift toward more conventional airline policies has coincided with a return to profitability. Although its profit margins remain well below those of Delta and United, the airline outperformed American in 2025 and significantly outpaced JetBlue, according to Javelin.
The rewards overhaul could help Southwest remain competitive as it seeks to strengthen its financial performance.
“The question now is whether new fees, seating products and loyalty revenue can produce durable margins without weakening customer loyalty,” Riley said. “Herb Kelleher would be proud.”
