Southwest Airlines Introduces Basic Economy Fares…By Another Name

Without notice, Southwest Airlines massively devalued earnings on its most reasonable Wanna Get Away fares, effectively introducing basic economy fares by another name.

Southwest Airlines Guts Earnings On Wanna Get Away Fares

The value proposition of Rapid Rewards, the loyalty program of Southwest Airlines, has changed without notice.

In essence, the cheapest fares will earn a fraction (67% less) of the points they once did. Meanwhile, the priciest “Business Select” fares will earn slightly more points than at present.

Elite Bonuses of 25% for A-List members and 100% for A-List Preferred will continue.

The practical effect of this is making Wanna Get Away fares akin to basic economy on other carriers in terms of earning…your future bookings will earn a small fraction of the points they once did. These cheap fares will earn points at a rate that makes it very hard to save up sufficient points for a free trip.

Pushed by Elliott Investment Management to increase profits, Southwest hopes that its loyal flyers will buy up to higher fare classes in order to earn more points. But the move also risks alienating flyers who seem to be experiencing death by a thousand cuts lately as Southwest panics due to pressure by a nefarious hostile investor.

> Read More: What Is Really Going On At Southwest Airlines?

Boycott?

Since my call to boycott Avianca Lifemiles after its latest unannounced devaluation oddly stirred a fair amount of virtue-signalling dissent, I thought I’d address that now. No, I’m not calling for a boycott of Southwest Airlines over this for two reasons. First, because change does not represent a devaluation of your points in terms of redemptions (redemption prices are not changing). Previously booked tickets will also still earn at the old rates. As painful as any devaluation is, there’s a big difference between devaluing points already earned (or tickets already purchased) and devaluing future. Notice is always preferred, but this move does not constitute the sort of unethical lack of notice that Avianca Lifemiles was guilty of.

Second, Southwest Airlines remains a behemoth domestic carrier in the United States. It’s easier to boycott a small airline or loyalty program that is hardly unique in its offerings than the nation’s third-largest domestic carrier.

Still, I will be unlikely to cover deals at Southwest or pushing the Southwest co-branded credit card because I see the carrier moving in a very dangerous and negative direction under the pressure of Elliott.

CONCLUSION

Southwest Airlines has gutted earnings on its cheapest fares, a de facto introduction of basic economy fares. Previously booked tickets (prior to 04 March 2025) will not be impacted and the redemption side has not been devalued…yet. What’s next, though? The elimination of free checked bags on the cheapest fare as well? The introduction of change fees? We’ll soon find out.

image: Southwest Airlines