Southwest Paid Flight Earning Change
Wow! Like, wow! Southwest just burned a ton of loyalty and trust they had spent decades building with the snap of a finger. They did it in the cheapest and dirtiest way possible too. How did they pull this epic fall to last place in the industry in the blink of an eye? With a Southwest paid flight earning change that is so pathetic it makes me mad – and I don't even really fly Southwest. I get that they are struggling right now with profitability for the first time ever, and had to lay off employees for the first time ever, but torpedoing your most profitable asset – to by far the worst program in your industry – is not the answer. It is official, Southwest is one of the big three four now, and may be the worst of the bunch.
What Changed?
What exactly changed with the Southwest paid flight earning change. A Rapid Rewards earning devaluation that Southwest pulled off overnight without any notice? They slashed the amount of Rapid Rewards points you earn for paid flights in the most used categories. It gets even worse for their most loyal fliers, since status holders get hit twice as hard.
| Fare Class | Old Earning Rate | New Earning Rate |
| Wanna Get Away | 6 Rapid Rewards Per $1 | 2 Rapid Rewards Per $1 |
| Wanna Get Away+ | 8 Rapid Rewards Per $1 | 6 Rapid Rewards Per $1 |
| Anytime | 10 Rapid Rewards Per $1 | 10 Rapid Rewards Per $1 |
| Business Select | 12 Rapid Rewards Per $1 | 14 Rapid Rewards Per $1 |
Let's be honest here, the only fare that really matters for people is the Wanna Get Away fare. These are the most affordable rates, and the others rarely offer enough value to pay the additional cost. That is unless you need to move credit to someone else, but besides that we are grabbing Wanna Get Away. Well, the earning rate on paid flights just got slashed by 67%. You read that right, it was demolished by two thirds. Unheard of!
It isn't like the value of Southwest Rapid Rewards are great anyway. They are valued at around 1.3 cents per point with no opportunity to get outsized value. That is already towards the bottom of the barrel in terms of value of program points. Now they made the earn side the worst in the business to go along with it. Wild! Why would any road warrior focus on Southwest now? They are now giving you a 2.6% rebate on your spend, down from 7.8%. That is a loss of 5.2% in return for your spend.
The Rapid Rewards Earnings Changes Gets Worse For Southwest's Most Loyal Customers
This was already bad, but it gets worse if you are a frequent (paying) Southwest customer. Because if you have status the earning rate was slashed even further (in terms of overall return). That is because the multipliers you are supposed to earn on paid fares. Link to new rates.
| Status Level | Old Wanna Get Away Earning | New Wanna Get Away Earning |
| A List (25% Bonus) | 7.5 Rapid Rewards Per $1 | 2.5 Rapid Rewards Per $1 |
| A List Preferred (100% Bonus) | 12 Rapid Rewards Per $1 | 4 Rapid Rewards Per $1 |
Southwest's biggest spenders, A List Preferred, just had the rebate on their spend go from 15.6% down to 5.2%. They now earn less than people used to that had no status at all. That is a loss of over 10% in rebate on their spend. Gross!
Southwest Is Bonvoy Of The Air
Southwest has lost pretty much every competitive advantage they had in the space over the last few years. The main one being the loyalty they had built over the decades being the most consumer friendly airline. They started that downhill tumble by announcing that they were changing their beloved seating policy (I don't get why people loved it but they did) and would start charging for some seats. Now an overnight devaluation at levels never seen before in the airline loyalty space. I wouldn't be surprised if the already below average Rapid Rewards values are next.
Southwest rarely has the cheapest fares anymore either, so value isn't something they can rest their laurels on like they once did. Throw in the fact that other airlines offer free cancellations now, a big Southwest perk for many years, and what is left? True, the Companion Pass is a huge feather (maybe only) in their cap still. If you don't have that though, you must really hate paying for bags. Because that is all you have to lean back on with Southwest now. If that is you, it may be time to join team carry-on and move on from Southwest.
The real negative here is that Southwest showed that they care very little for their customers with this change. They made the Southwest paid flight earning change overnight, and without notice. That isn't the way the Southwest you grew to love treats its customers. That is how Bonvoy treats their customers – with disdain.
Southwest Paid Flight Earning Change: ToP Thoughts
The Southwest paid flight earning change may not bother you at all since you only use Rapid Rewards and still have a Companion Pass. If Southwest still works for you that is great. You have to see the writing on the wall though. This won't be the last negative change, and if you were on the fence with Southwest before it may be time to hop off. If you transfer Ultimate Rewards to Southwest it is probably time to reconsider that as well. The problem is if you go another route, your earning on the paid side is basically a bag of stale nuts now. Do these changes mean we should even reconsider where we put our Amex airline incidental credits? Yes, everything should be up for debate internally. Send Southwest a message that this isn't okay with your money, wherever that spend comes from.
Let me know your thoughts on these changes to Rapid Rewards earnings over in the ToP Facebook Group.
