Nearly everything that made Southwest stand out from other airlines is changing. It’s introducing checked bag fees, basic economy tickets and flight-credit expiration dates, as well as adjusting the redemption value of Southwest points. This all comes after announcing assigned seats and reducing the number of points you earn on the cheapest tickets.

While there’s little you can do about most of these changes, there are ways to avoid the upcoming checked bag fees. Travelers with a Southwest credit card are entitled to one complimentary checked bag. Depending on how closely Southwest’s checked bag fees align with the industry standard of $35+ per bag each way, this could significantly boost the value of Southwest’s credit cards.

Several changes going into effect for tickets purchased on or after May 28, 2025, including:

• Baggage fees: Fliers will pay for checked bags unless you have Rapid Rewards status (two free bags for A-List Preferred members and one free checked bag for A-List members), book a Business Select ticket (two free checked bags) or have a Southwest credit card (one free checked bag).
• Basic fares: Southwest is adding a cheaper — and more restrictive — basic economy fare.
• Flight-credit expiration dates: When you pay cash (not points) for a non-refundable flight, you can cancel up to 10 minutes before departure and receive a flight credit. These credits will expire after one year. For Basic fares, the flight credit expires after six months.

Southwest also says it will be introducing “variable redemption rates” based on demand. It already prices awards dynamically, so when cash prices are higher, you’ll pay more points and vice versa. You typically get around 1.3 to 1.4 cents per point in value when booking Southwest awards. This change means the value you get per point could vary from one flight to the next.

All of this is in addition to recent changes to the points you earn when paying for flights. Business Select fares earn more points, while other fares earn less than before. Southwest is also abandoning its opening seat policy in favor of assigned seats, including an extra legroom option, which goes into full effect in 2026.

What Southwest credit card makes sense for you

We don’t have the full details on how Southwest credit card benefits will change in response to this complete overhaul of how Southwest does business. What we do know is that all Southwest cardholders will get:

• A free checked bag benefit
• Complimentary seating and boarding perks

Certain Southwest cards (likely the more expensive options) will also include seat upgrades within 48 hours of departure (when available).

If you don’t have Southwest elite status, the cheapest option for getting a free checked bag will be the Southwest Rapid Rewards® Plus Credit Card. It has a $69 annual fee, which may be as much as the baggage fees for a round-trip flight.

Anyone looking for a wider range of benefits to go with a free checked bag may appreciate what the Southwest Rapid Rewards® Priority Credit Card offers. It has a $149 annual fee but comes with a $75 annual Southwest travel credit, 7,500 bonus points every card anniversary and four Upgraded Boardings per year.

You can transfer Chase Ultimate Rewards points to Southwest Rapid Rewards at a 1:1 ratio when you have certain Chase credit cards, such as the Chase Sapphire Preferred® Card or Chase Sapphire Reserve®. These cards offer higher rewards for certain purchases, like dining, which make them strong options for earning Southwest points. Plus, you can use your points for more than just Southwest flights, there are 14 airline and hotel transfer partners.

These cards also offer a boost in value when you use points to pay for travel booked through Chase Travel^SM. With the Sapphire Preferred, you’ll receive a 25% boost (1.25 cents per point) and with the Sapphire Reserve, you’ll receive a 50% boost (1.5 cents per point).

Rapid Rewards points are typically worth around 1.3 to 1.4 cents per point for flights. When Southwest shifts to more dynamic prices, that value could be less in certain instances. This would make booking Southwest flights through Chase Travel^SM a better option for your Chase points than transferring them to Southwest because you’ll get more value.

Also, since the rewards you earn are worth more, the Chase Sapphire cards could be better options for earning rewards for Southwest flights. You won’t get a free checked bag with the Sapphire cards, and the points you earn won’t count toward the Southwest Companion Pass (point transfers don’t qualify for the Companion Pass).

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