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Southwest Airways is shaking issues up, and it’s about time. Their new partnership with Icelandair is a game-changer, marking Southwest’s first actual step into the worldwide airline enviornment. Beginning someday subsequent yr, you’ll be capable to fly Southwest to Baltimore-Washington airport (BWI) and connect with Reykjavik and past on the identical ticket. For these of us all the time seeking to stretch our journey price range and Speedy Rewards factors, this opens up some fascinating prospects.
However Southwest isn’t stopping there. They’re planning so as to add no less than yet one more worldwide associate subsequent yr. It’s a wise transfer that’ll assist them compete with the massive legacy carriers with out the large funding of launching their very own long-haul routes. This might imply extra choices for utilizing your Speedy Rewards factors and doubtlessly accessing a wider vary of locations.
Southwest’s being coy with the main points, however they’re hinting at some adjustments to Speedy Rewards, too. Suppose worldwide flight redemptions and higher perks for A-Checklist and A-Checklist Most popular members. I’m curious to see how this performs out. Will we see higher redemption charges for worldwide flights? Extra methods to earn tier qualifying factors? The probabilities are intriguing.
Why Icelandair makes excellent sense for Southwest
Icelandair, very like Copa Airways, operates a hub-and-spoke community between the U.S. and Europe. With 34 locations in Europe they’ve just about obtained the continent lined with planes which might be just like these you’d count on doing flights throughout the U.S., with a enterprise class that extra resembles a home top notch seat than a lie-flat one. For me, that’s not definitely worth the upcharge.
I’m not somebody who’s anxious a couple of lie-flat seat for each single flight over the pond. The flight time from BWI to Reykjavik (KEF) is about six hours, virtually the identical as a transcon or a latest flight I took from D.C. to Cancun. That’s not an period of time that may kill me to be in a daily seat, particularly if the value is correct.
And the value is what excites me most. Icelandair’s BWI-KEF flights typically go underneath $500 round-trip in economic system, and if Southwest retains the identical redemption price of round 1.4 cents, meaning these flights may go for round 35,000 Speedy Rewards round-trip in economic system. In fact we don’t know the main points but, however I can’t wait to seek out out.
The top of the Southwest scramble?
Right here’s a shocker: Southwest’s introducing assigned seating. I do know, it’s exhausting to think about Southwest with out the mad sprint to say your spot. However in keeping with a Southwest survey, 80% of their clients need this variation. Depend me firmly on this camp. I gained’t miss checking in 23 hours and 59 minutes earlier than my flight to get rewarded with the dreaded “C” boarding group.
And should you’re tall or similar to a bit further area, you’ll be blissful to listen to they’re including premium seats with further legroom. This transfer in the direction of a extra differentiated product providing may attraction to vacationers prepared to pay a bit extra for added consolation.
Southwest Credit score Playing cards: What’s Coming?
Southwest’s bank card lineup is sure to be affected by the brand new seating and perk choices. With new seating choices on the horizon, count on to see some tweaks to card advantages. Perhaps precedence entry to these new premium seats or level redemptions for seat assignments? We’ll have to attend and see, but it surely’s value maintaining a tally of should you’re a cardholder or contemplating making use of.
Study extra: Greatest airline bank cards.
I’m particularly excited on the thought of utilizing Southwest Speedy Rewards factors for European journeys. The brand new route choices are making Southwest bank cards extra interesting to me together with the Chase Final Rewards-earning playing cards as Southwest is a Chase switch associate. You additionally should marvel how Southwest’s well-known Companion Passes may work within the new partnership.
At the moment, Southwest presents a number of bank card choices, every with its personal perks and annual charges. The Southwest Speedy Rewards® Precedence Credit score Card, for instance, comes with advantages like a $75 Southwest® annual journey credit score annually and seven,500 anniversary factors annually. Because the airline evolves, we are able to count on these card choices to adapt as effectively.
Southwest Speedy Rewards® Precedence Credit score Card
Intro bonus
Earn 85,000 bonus factors after spending $3,000 on purchases within the first 3 months from account opening.
| Annual charge | $149 |
| Common APR | 21.49%–28.49% variable |
In case you are a Southwest street warrior, the every day free wifi alone may make this card value it. Add in anniversary factors and powerful rewards charges for Southwest purchases and you will greater than recoup the annual charge.
Rewards Charges
- 3x 3X factors on Southwest® purchases
- 2x 2X factors on Speedy Rewards® resort and automotive rental companions, native transit and commuting, together with rideshare, web, cable, and cellphone companies; choose streaming
- 1x 1X factors on all different purchases
- Extra perks: 25% in-flight low cost, Earn 1,500 TQPs for each $5,000 spent annually, 10,000 level low cost on incomes the Southwest Companion Move
- Overseas transaction charge: None
at Cardratings.com
Study extra: Greatest journey bank cards.
What’s Not Altering
Earlier than you begin considering Southwest’s turning into simply one other huge airline, let’s speak about what’s staying the identical. You’ll nonetheless get two free checked luggage, and so they’re protecting their no change charge coverage the place you’ll be able to simply rebook if costs go down. In an period the place most airways nickel and dime you for every little thing, these insurance policies proceed to set Southwest aside.
Speedy Rewards factors will nonetheless haven’t any blackout dates, gained’t expire, and reward seats will stay uncapped. This dedication to sustaining the core strengths of their loyalty program is reassuring. It means that whereas Southwest is evolving, they’re not forgetting what made them a favourite amongst budget-conscious vacationers within the first place.
Wanting forward: Southwest’s broader technique
These adjustments are half of a bigger transformation plan Southwest calls “Southwest. Even Higher.” Past the Icelandair partnership and seating adjustments, they’ve obtained a couple of different methods up their sleeve:
- “Getaways by Southwest”: A brand new trip bundle product launching in 2025, providing customizable bundles with Southwest’s signature versatile insurance policies.
- 24-hour operations: The airline will introduce redeye flights in key markets beginning in February 2025. This may very well be a game-changer for vacationers seeking to maximize their time and reduce resort nights.
- Operational efficiencies: Southwest is engaged on quicker plane turnaround instances and different measures to optimize its operations. Whereas this may not sound thrilling, it may imply fewer delays and a smoother journey expertise, which is very crucial after the notorious meltdown of December 2022.
The takeaway
These adjustments may open up some fascinating prospects for journey. Utilizing Speedy Rewards factors for a European journey? Not having to emphasize about boarding place to sit down with your loved ones? Sounds fairly good to me.
Nevertheless it’s not nearly comfort—these strikes place Southwest to compete extra successfully within the world aviation market. In fact, we’ll should see the way it all shakes out. Southwest’s attempting to develop up with out forgetting what made them common within the first place. It’s a difficult steadiness, but when they pull it off, it may very well be a win for vacationers.
The important thing might be within the execution: Can they implement these adjustments whereas sustaining the pleasant, environment friendly service they’re identified for? Both manner, I believe it’s going to be fairly the trip.
Welcome to What’s in Dia’s pockets. On this month-to-month column I’ll share what’s, sure, in my pockets but additionally what’s on my thoughts. After over a decade overlaying bank cards, touring a mean of 100 nights a yr, and incomes and spending over one million factors annually to do it, I’ve realized a couple of issues. You probably have questions or concepts for future matters please attain out to me at creditcards@fortune.com. Dia Adams, Senior Editor
Fortune Recommends™ has partnered with CardRatings for our protection of bank card merchandise. Fortune Recommends™ and CardRatings might obtain a fee from card issuers.
Please notice that card particulars are correct as of the publish date, however are topic to vary at any time on the discretion of the issuer. Please contact the cardboard issuer to confirm charges, charges, and advantages earlier than making use of.
