Southwest Shocks Customers with Drastic Changes to Rapid Rewards

Southwest Airlines has just upended its Rapid Rewards frequent flyer program, blindsiding customers with a sweeping devaluation of its points-earning structure—without a single warning.

Effective immediately, the airline has slashed the number of points earned on its lowest fare categories, fundamentally changing the value proposition for many loyal flyers.

In an industry first, Southwest made these dramatic changes overnight, with no advance notice to customers. As first reported by View from the Wing, the airline has cut the points earned on its cheapest fares by as much as 67 percent, while modestly increasing earnings for its most expensive fare class.

Southwest Airlines winter weather operations in Dallas Love Field on Feb. 17, 2021. // Stephen M. Keller, 2021

The abruptness and severity of the change have left many frequent flyers frustrated, particularly given Southwest’s history of clear communication around past loyalty program adjustments.

New Earning Structure

Here’s how the new Rapid Rewards earning system breaks down:

• Wanna Get Away fares: Reduced from 6x points per dollar to 2x points per dollar (-67 percent)
• Wanna Get Away Plus fares: Reduced from 8x points per dollar to 6x points per dollar (-25 percent)
• Anytime fares: Unchanged at 10x points per dollar
• Business Select fares: Increased from 12x points per dollar to 14x points per dollar (+17 percent)

Elite status members will also feel the sting of these changes. A-List members, who receive a 25 percent bonus on points, and A-List Preferred members, who receive a 100 percent bonus, will see their earning potential drastically cut on cheaper fares.

Courtesy of Southwest Airlines

For example, an A-List Preferred member who once earned 12x points per dollar on a Wanna Get Away fare will now earn just 4x points per dollar—a severe devaluation.

Existing Bookings Are Impacted

To make matters worse, Southwest is not honoring previous points-earning structures for tickets already purchased. This means that travelers who booked flights expecting a certain level of Rapid Rewards earnings will now receive significantly fewer points than they originally planned for.

Photo: Courtesy of Southwest Airlines / Stephen M. Keller

This retroactive approach is highly unusual in the airline industry, where loyalty program changes typically come with months of advance notice.

Why Is Southwest Doing This?

Southwest Airlines is currently facing financial difficulties and performance challenges. The airline has come under increasing pressure from its activist investor, Elliott Investment Management, which recently acquired a significant stake in the company. This firm has been advocating for major improvements in profitability and has appointed board members at Southwest to enforce substantial changes that could lead to quicker returns.

In light of these pressures, the airline announced layoffs of approximately 1,750 employees, including several senior leaders, as part of an effort to cut costs and create a “leaner and more agile organization,” according to CEO Bob Jordan. These layoffs, which represent about 15 percent of Southwest’s corporate workforce, mark the first mass layoffs in the company’s 53-year history. Jordan acknowledged that these cuts are “difficult” and “unprecedented,” but deemed them necessary.

Photo: Southwest Airlines control center. Courtesy of Stephen M. Keller / Southwest Airlines

The airline’s stock price has significantly declined over the past two years, and revenue growth has stagnated. Southwest is also undergoing broader changes, such as implementing new seating assignments, adding extra-legroom seating, and significantly reducing its workforce.

By cutting the points earned on its two most popular fare classes, Southwest is betting that the resulting cost savings will compensate for any customer dissatisfaction. However, given the airline’s traditionally loyal customer base, the potential backlash could be significant.

A ‘Basic Economy’ Move Without the Label?

For years, Southwest has positioned itself as an airline that does things differently—no change fees, two free checked bags, and no hidden charges. However, the Rapid Rewards changes bear a striking resemblance to how other airlines have devalued their frequent flyer programs while rolling out “Basic Economy” fares.

Photo: Southwest Airlines New Cabin Interior. Courtesy of Stephen Keller / Southwest Airlines

While Southwest has long resisted the urge to introduce Basic Economy, this move could be seen as a stealthy way of implementing a similar concept without actually naming it.

Customer Backlash Incoming

The sudden and secretive nature of the recent changes to Southwest Airlines’ loyalty program has frustrated many of the airline’s most loyal customers. Frequent flyers have taken to social media and travel forums to express their anger, with many labeling the move as “ruthless” and a “betrayal” of the airline’s customer-first reputation.

Robert Surek, a technology banker, posted on the social media platform X, saying, “Nice job, SouthwestAir for devaluing the Rapid Rewards program without notice or grandfathering existing purchases. They only value Business Select purchases and don’t care about A-List Preferred customers.”

Leslie Harvey, a blogger who covers family travel, had a slightly more optimistic view. “I’m looking forward to sitting down and crunching the numbers on this Southwest Rapid Rewards devaluation tonight. My early take? It’s extreme, but for folks like me who earn the vast majority of their points not from flying, the sky is not falling. At least not yet.”

Photo: Bob Jordan, CEO at Southwest Airlines. Courtesy of Maria Nieto, Southwest Airlines, 2024

Southwest has not yet issued an official explanation for why it chose to implement these changes without notice. Historically, the airline has been more transparent about adjustments to its loyalty program, providing customers with time to adjust their travel plans accordingly. The lack of communication this time is particularly jarring for longtime Rapid Rewards members.

Recently, other airlines have also made drastic changes to their frequent flyer programs, causing significant concern among their top flyers. After voicing their complaints on social media, these customers have successfully pressured some airlines to revert their decisions or make adjustments.

A Bad Look for Southwest

There has never been a more drastic devaluation of an airline loyalty program with absolutely zero warning. Overnight, Southwest has fundamentally altered the value of its frequent flyer program, punishing those who opt for its most affordable fares.

While Southwest is undoubtedly under pressure to boost profits, alienating loyal customers without so much as an email warning is a risky move. Whether this change ultimately benefits the airline financially remains to be seen, but one thing is clear—Southwest is likely to lose significant trust among its Rapid Rewards members, and rebuilding that trust won’t be easy.