Southwest Airlines Gives Back Some Perks it Took Away

For decades, Southwest Airlines had arguably the best loyalty program and one of the strongest rewards credit cards.

The loyalty program, Rapid Rewards, has been devalued over the past couple of years. That has been tied pretty directly to the airline's efforts to drop everything that made it special.

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Since Southwest now sells guaranteed seating, for example, being a top-tier loyalty member who gets to board early doesn’t mean as much. Yes, you can gain access to overhead bins and that’s a benefit, but you won’t get the perk of picking your own seat.

In many ways, by becoming a traditional fees-for-everything airline, Southwest opened up some space to improve its credit card.

In the old days, the Southwest credit card helped passengers accrue miles toward free flights. You can still do that, but when the airline finishes revamping its credit card, you’ll be able to use it to restore many of the perks that used to be standard.

It’s not ideal to have to essentially earn things you once got for free, but when the new system is fully in place early next year, the new credit card will be much more valuable.

Southwest Airlines adds new credit card

CEO Robert Jordan brought up the new card during Southwest's second-quarter earnings call.

"And just this morning, we announced new and enhanced benefits to our co-brand credit cards offered through Chase. These benefits align with our new product offering and are designed to incentivize increased spending with perks like more points for everyday spending on things like groceries, gas and dining purchases," Jordan shared.

COO Andrew M. Watterson shared his excitement about the new card as well.

"We've been very pleased with our co-brand agreement with Chase, and we're excited about the new and enhanced benefits on our credit cards announced this morning, which align with our new product offering," he said.

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Watterson also shared some of the benefits that are being added.

"New benefits include one free checked bag, pre-flight seat selection, and upgrades to extra legroom with any fare bundle as well as earlier boarding. Even before these new products and card enhancements, we've seen increased sign-ups with our existing card," he said.

He's confident the new perks (many of which are things that used to be included on all fares by the airline) will make people use their Southwest credit card more. 

"The benefits include a seating benefit, which is not common in the industry, as well as a bag benefit, which is common, and improved bonus points on dining, gas, and groceries, which will increase kind of the debit active rate, how often one uses one's card, it will move to the top of the wallet," he added. 

Chase Southwest consumer credit card benefits

• First checked bag free for you and up to 8 companions
• Complimentary seat selection: Priority at booking, others within 48 hours
• Priority boarding (Group 5)
• Companion Pass boost: 10,000 points yearly
• Anniversary points: Plus (3K), Premier (6K), Priority (7.5K)
• Extra legroom upgrades (Priority only)
• Earning boosts: Up to 4X on Southwest, 2X on gas/grocery/restaurant
• 25% back on in-flight purchases
• No foreign transaction fees
• Limited-time sign-up bonus: 100,000 points after $4K spend in 5 months (through Sept. 17, 2025)

"It’s fair to say, then, that some of the cards' new benefits are simply regifts of perks that Southwest used to offer all customers, for free. Because of those airline changes, though, it's also fair to say that for frequent Southwest flyers, holding one of these cards likely makes more sense than ever," wrote NerdWallet's Jae Bratton.

The Points Guy's Sean Cudahy pointed out another major issue with the new card.

"But the changes will come at a hefty price tag for new and existing cardholders. Annual fees on each Southwest card are set to rise sharply, with average fee hikes hovering around 50%," he wrote. 

FAQ: Southwest Chase Credit Card

• What are the main benefits of the Southwest Chase credit card? Free checked bag, seat selection, priority boarding, extra legroom (Priority), bonus points, and Companion Pass boost

• What additional perks come with the card? 25% back on in-flight purchases, anniversary points (3K–7.5K depending on tier), and earning boosts on Southwest flights, gas, groceries, and dining

• What’s the sign-up bonus? 100,000 points after $4,000 spent in 5 months (through Sept. 17, 2025)

• Are there foreign transaction fees? No, all consumer cards have no foreign transaction fees.

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