Southwest has restructured its credit card rewards and benefits
Southwest Airlines made significant changes to its co-branded credit cards in 2024, affecting how you earn points, what perks come with the card, and how much the annual fee costs. If you already hold a Southwest card or are thinking about getting one, the changes mean your rewards strategy may need to shift. The main changes touch three areas: the earning structure for points, the companion pass rules, and what you pay each year to keep the card.
These changes do not affect your existing points balance or how you redeem them on flights. They affect only new cardholders and how current cardholders earn going forward. If you have an older Southwest card, you may be grandfathered into the old terms, but that depends on your card issuer and the specific product.
Key Takeaways
- Southwest changed how many points you earn per dollar spent on purchases, and the earning rates now vary by card product and spending category.
- The companion pass — which lets you bring someone on flights for the cost of taxes and fees only — now requires more points to unlock than it did before.
- Annual fees increased on some cards and new cards were introduced with different fee structures and benefit packages.
- Existing cardholders should review their card's terms to understand whether they are earning under the old or new structure.
How the earning rates changed
Southwest's credit cards previously earned a flat rate of points per dollar on most purchases. The new structure splits earning into categories: you earn more points per dollar on Southwest purchases and less on everyday spending. The exact rates depend on which Southwest card you hold — the company now offers multiple versions at different price points.
For example, one card may earn 3 points per dollar on Southwest purchases and 1 point per dollar on everything else, while another earns 2 points per dollar on Southwest and 1 point per dollar elsewhere. The card you choose should match how much you fly and how much you spend on non-airline purchases. If you fly Southwest frequently and put most expenses on the card, a higher earning rate on airline purchases makes sense. If you use the card mainly for everyday spending, a card with better non-airline earning may be worth more to you.
You can find the exact earning rates for each card on the Southwest Airlines website or the issuer's site. Rates vary by card product, so comparing the options before you explore is important.
The companion pass now costs more points
The Southwest Companion Pass has always been the card's signature benefit — it lets you bring a companion on flights for only the taxes and fees, which usually run $5 to $15 per flight. Historically, you could earn the pass by hitting a spending threshold on the card or by accumulating a certain number of points through flying and card use.
Southwest raised the point threshold needed to unlock the pass. The exact number depends on which card you hold and when you earned the points, but the increase means you will need to spend more or fly more to reach it. If you were counting on the pass as your main reason to get the card, calculate whether the higher threshold still makes the card worth the annual fee and the spending required.
The pass remains one of the strongest rewards in airline cards — bringing a companion for nearly free is hard to beat — but it now requires more commitment. If you do not fly Southwest regularly or do not have a frequent companion, the card may not pay for itself.
Annual fees went up on some products
Southwest increased the annual fee on at least one of its cards and introduced new card tiers with different fees and benefit packages. Some cards now cost more than they did before; others remain the same or have been discontinued. The fee increase means you need to earn more points or get more value from the card's perks just to break even.
When you are deciding whether to keep a card or switch to a new one, add up what you actually use: the points you earn, the companion pass value if you unlock it, any statement credits or travel perks, and the annual fee. If the benefits do not exceed the fee by a meaningful margin, the card is costing you money. You can call the card issuer and ask about downgrading to a no-fee version of the card instead of closing the account, which protects your credit history.
What to do if you already have a Southwest card
If you hold a Southwest card issued before the changes, check your card's terms to see whether you are grandfathered into the old earning rates and benefits or moved to the new structure. Your issuer should have sent you a notice, but it may have arrived as a separate mailing or in your online account. If you cannot find it, call the number on the back of your card and ask directly.
Once you know your terms, decide whether the card still makes sense for you. If you were earning at a higher rate before and now earn less, the card may no longer be worth the annual fee. If you were paying a lower fee and it increased, run the math again. You have options: keep the card if it still delivers value, downgrade to a no-fee version, or switch to a different airline card or cash-back card that better matches your spending.
Comparing Southwest cards to other airline cards
Southwest's changes make it worth comparing to other airline cards, especially if you fly multiple carriers or want more flexibility. American Express, United, and Delta all offer co-branded cards with different earning structures, annual fees, and perks. A card from a different airline may earn points faster on non-airline spending, offer a higher sign-up bonus, or have a lower annual fee.
The trade-off is that points from one airline's card do not transfer to another airline. If you are loyal to Southwest, that is not a problem. If you fly different carriers depending on price or schedule, a card that earns points across multiple airlines or a general cash-back card might serve you better. Look at your last year of flights and spending to see which card would have earned you the most value.
Sign-up bonuses and how they factor in
Southwest and its card issuer periodically offer sign-up bonuses — a lump sum of points if you spend a certain amount in the first few months. These bonuses can be substantial and may offset the annual fee in your first year. However, the bonus amount changes over time and varies by offer, so the bonus you see today may not be available next month.
If you are considering a Southwest card, check the current bonus offer before you explore. Calculate whether the bonus plus the points you expect to earn in the first year cover the annual fee and give you extra value. If the bonus is small or the spending requirement is high, the card may not be worth it. Remember that you have to meet the spending threshold to get the bonus, so only count it if you genuinely plan to spend that much.
Frequently Asked Questions
Do the new earning rates explore to points I already have?
No. The earning rate changes explore only to new purchases going forward. Points you have already earned stay in your account and redeem at the same value they always did. Only the rate at which you earn new points has changed.
Can I downgrade my card instead of closing it?
Yes. Most card issuers let you downgrade to a no-fee version of the same card without closing the account. This protects your credit history because the account stays open and active. Call the number on the back of your card and ask whether a no-fee option is available.
If I switch to a different airline card, what happens to my Southwest points?
Your Southwest points stay in your account indefinitely and do not expire. You can redeem them for Southwest flights anytime. Switching cards does not affect the points you have already earned, only the rate at which you earn new points.
Are the changes permanent or could they change again?
Airlines and card issuers change their programs regularly, so earning rates, fees, and benefits can shift again in the future. The changes announced in 2024 are the current terms, but there is no may provide they will stay the same forever. Check your card's terms periodically and watch for notices from your issuer.
Should I close my Southwest card if the changes make it less valuable?
Before closing, downgrade to a no-fee version if one is available. Closing the account can hurt your credit score because it reduces your available credit and shortens your credit history. Downgrading keeps the account open and active without costing you an annual fee.