The offer mentioned below for the Chase Sapphire Preferred® Card and Chase Sapphire Reserve® is no longer available.
Nearly everything that made Southwest stand out from other airlines is changing. It's introducing checked bag fees, basic economy tickets and flight-credit expiration dates, as well as adjusting the redemption value of Southwest points. This all comes after announcing assigned seats and reducing the number of points you earn on the cheapest tickets.
While there's little you can do about most of these changes, there are ways to avoid the upcoming checked bag fees. Travelers with a Southwest credit card are entitled to one complimentary checked bag. Depending on how closely Southwest's checked bag fees align with the industry standard of $35+ per bag each way, this could significantly boost the value of Southwest's credit cards.
What's changing with Southwest
Several changes going into effect for tickets purchased on or after May 28, 2025, including:
- Baggage fees: Fliers will pay for checked bags unless you have Rapid Rewards status (two free bags for A-List Preferred members and one free checked bag for A-List members), book a Business Select ticket (two free checked bags) or have a Southwest credit card (one free checked bag).
- Basic fares: Southwest is adding a cheaper — and more restrictive — basic economy fare.
- Flight-credit expiration dates: When you pay cash (not points) for a non-refundable flight, you can cancel up to 10 minutes before departure and receive a flight credit. These credits will expire after one year. For Basic fares, the flight credit expires after six months.
Southwest also says it will be introducing "variable redemption rates" based on demand. It already prices awards dynamically, so when cash prices are higher, you'll pay more points and vice versa. You typically get around 1.3 to 1.4 cents per point in value when booking Southwest awards. This change means the value you get per point could vary from one flight to the next.
All of this is in addition to recent changes to the points you earn when paying for flights. Business Select fares earn more points, while other fares earn less than before. Southwest is also abandoning its opening seat policy in favor of assigned seats, including an extra legroom option, which goes into full effect in 2026.
What Southwest credit card makes sense for you
We don't have the full details on how Southwest credit card benefits will change in response to this complete overhaul of how Southwest does business. What we do know is that all Southwest cardholders will get:
- A free checked bag benefit
- Complimentary seating and boarding perks
Certain Southwest cards (likely the more expensive options) will also include seat upgrades within 48 hours of departure (when available).
If you don't have Southwest elite status, the cheapest option for getting a free checked bag will be the Southwest Rapid Rewards® Plus Credit Card (see rates and fees). It has a $99 annual fee, which may be as much as the baggage fees for a round-trip flight.
The Southwest Rapid Rewards® Plus Credit Card is an affordable card that makes sense for the occasional Southwest traveler.
- Valuable welcome bonus
- 3,000 bonus points every card member anniversary
- Not especially rewarding for common expenses such as groceries or dining
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- Earn 80,000 bonus points after spending $1,000 on purchases in the first 3 months from account opening
- 3,000 anniversary points each year.
- Earn 2 points per $1 spent on Southwest Airlines® purchases
- Earn 2 points for every $1 you spend at gas stations and grocery stores on the first $5,000 in combined purchases per anniversary year
- Cardmembers and up to 8 additional passengers in the same reservation can check their first bag at no additional cost.
- Select a Standard seat within 48 hours prior to departure, when available.
- Earn 1 point for every $1 spent on all other purchases.
- No foreign transaction fees.
- Member FDIC
Balance transfer fee
Either $5 or 5% of the amount of each transfer, whichever is greater
Anyone looking for a wider range of benefits to go with a free checked bag may appreciate what the Southwest Rapid Rewards® Priority Credit Card offers (see rates and fees). It has a $229 annual fee but comes with 7,500 bonus points every card anniversary.
The Southwest Rapid Rewards® Priority Credit Card is a perfect fit for serious Southwest fans who can easily maximize its benefits like upgraded boardings and an annual travel credit.
- Valuable welcome bonus
- 7,500 bonus points every card member anniversary
- $75 annual Southwest travel credit
- Limited value when you're not traveling with Southwest
- High annual fee
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- Earn 90,000 bonus points after spending $3,000 on purchases in the first 3 months from account opening.
- 7,500 anniversary points each year.
- Earn 4 points per $1 spent on Southwest Airlines® purchases, including flights, inflight, and Southwest gift cards.
- Earn 2 points for every $1 you spend at gas stations and restaurants
- First checked bag free for Cardmembers and up to 8 additional passengers in the same reservation.
- Select a Preferred seat at booking, at no additional charge, when available.
- Cardmembers and up to 8 passengers in the same reservation will board with Group 5 giving them earlier access to overhead bins.
- No foreign transaction fees.
- Member FDIC
Balance transfer fee
Either $5 or 5% of the amount of each transfer, whichever is greater.
Why a flexible travel credit card may make more sense
You can transfer Chase Ultimate Rewards points to Southwest Rapid Rewards at a 1:1 ratio when you have certain Chase credit cards, such as the Chase Sapphire Preferred® Card (see rates and fees) or Chase Sapphire Reserve® (see rates and fees). These cards offer higher rewards for certain purchases, like dining, which make them strong options for earning Southwest points. Plus, you can use your points for more than just Southwest flights, there are 14 airline and hotel transfer partners.
These cards also offer a boost in value when you use points to pay for travel booked through Chase TravelSM. With the Sapphire Preferred, you'll receive a 25% boost (1.25 cents per point) and with the Sapphire Reserve, you'll receive a 50% boost (1.5 cents per point).
Rapid Rewards points are typically worth around 1.3 to 1.4 cents per point for flights. When Southwest shifts to more dynamic prices, that value could be less in certain instances. This would make booking Southwest flights through Chase TravelSM a better option for your Chase points than transferring them to Southwest because you'll get more value.
Also, since the rewards you earn are worth more, the Chase Sapphire cards could be better options for earning rewards for Southwest flights. You won't get a free checked bag with the Sapphire cards, and the points you earn won't count toward the Southwest Companion Pass (point transfers don't qualify for the Companion Pass).
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