Is Southwest Airlines Ruining their Credit Card Line or Adding More Value?

Southwest Airlines has been making significant changes to their brand, adjusting their boarding system, seat layout, and even getting rid of their “bags fly free” policy. They’re introducing seating assignments, extra legroom seats, and changing their fare types. But what’s behind these changes, and how do they impact the Southwest credit card line?

Why Fly Southwest?

Let’s take a closer look. A sample fare from Orlando (MCO) to Washington D.C. (DCA) on Southwest Airlines costs $568 round trip, including taxes. Compare this to Delta, which costs $552 for the same flight, and it becomes clear that Southwest’s traditional perks, such as free checked bags, are no longer a significant differentiator.

So, why fly Southwest? One reason is their credit card benefits. Southwest has partnered with Chase to offer a range of credit cards, with three distinct tiers: Plus, Premier, and Priority.

Southwest Credit Card Tiers

Plus and Plus Business: The lowest tier, with a $69 annual fee, allows cardholders to select their standard seat within 48 hours of departure.

Premier and Premier Business: The mid-tier cards offer the ability to select preferred seats within 48 hours of booking.

Priority and Priority Business: The top-tier cards, with a $149 annual fee, allow cardholders to select extra legroom seats within 48 hours of booking, if available.

Benefits and Perks

All Southwest credit card holders will enjoy a free checked bag for themselves and up to eight additional people on their reservation. The Priority card also offers a $75 statement credit towards Southwest purchases and 7,500 Southwest points on the card member anniversary.

The Points Guy reported that Southwest is testing higher spending bonuses for their credit cards. I hold the Southwest Priority card, and I’ve experienced two different bonus structures: a flat 3,000-point bonus for spending $1,000, and a 5x points multiplier on certain categories, such as dining, groceries, and gas, up to $1,000 in spend.

Is it Worth Keeping a Southwest Credit Card?

Despite Southwest’s changes to their brand, holding a Southwest credit card can still be beneficial, especially for frequent flyers. The free checked bag policy for cardholders and potential access to extra legroom seats can more than make up for the annual fee.

For those who fly Southwest multiple times a year, the Priority card’s benefits can be substantial. The card’s $149 annual fee is offset by the $75 statement credit and 7,500 Southwest points on the card member anniversary.

Conclusion

While Southwest Airlines is making significant changes to their brand, their credit card line is evolving to offer more value to cardholders. The new tiered system and benefits, such as free checked bags and potential access to extra legroom seats, make holding a Southwest credit card a compelling option for frequent flyers.

As Southwest continues to test and refine their credit card offerings, it will be interesting to see how their changes impact the value proposition for cardholders. For now, it seems that holding a Southwest credit card can be a good decision for those who fly Southwest regularly.