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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 have the ability to fly Southwest to Baltimore-Washington airport (BWI) and connect with Reykjavik and past on the identical ticket. For these of us at all times trying to stretch our journey finances and Fast Rewards factors, this opens up some fascinating potentialities.
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 Fast Rewards factors and probably accessing a wider vary of locations.
Southwest’s being coy with the small print, however they’re hinting at some adjustments to Fast Rewards, too. Assume worldwide flight redemptions and higher perks for A-Record and A-Record Most well-liked 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 chances 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 bought the continent lined with planes which might be much like these you’d anticipate doing flights throughout the U.S., with a enterprise class that extra resembles a home firstclass seat than a lie-flat one. For me, that’s not well worth the upcharge.
I’m not somebody who’s frightened 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 an everyday seat, particularly if the value is correct.
And the value is what excites me most. Icelandair’s BWI-KEF flights usually go below $500 round-trip in financial system, and if Southwest retains the identical redemption fee of round 1.4 cents, meaning these flights might go for round 35,000 Fast Rewards round-trip in financial system. In fact we don’t know the small print but, however I can’t wait to seek out out.
The tip 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 based on a Southwest survey, 80% of their prospects need this alteration. Depend me firmly on this camp. I received’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 identical to slightly additional house, you’ll be completely satisfied to listen to they’re including premium seats with additional legroom. This transfer in direction of a extra differentiated product providing might 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 certain to be affected by the brand new seating and perk choices. With new seating choices on the horizon, anticipate 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 price maintaining a tally of should you’re a cardholder or contemplating making use of.
Be taught extra: Greatest airline bank cards.
I’m particularly excited on the thought of utilizing Southwest Fast 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 surprise how Southwest’s well-known Companion Passes would possibly work within the new partnership.
Presently, Southwest gives a number of bank card choices, every with its personal perks and annual charges. The Southwest Fast 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 will anticipate these card choices to adapt as properly.
Southwest Fast 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 price | $149 |
| Common APR | 21.49%–28.49% variable |
If you’re a Southwest street warrior, the each day free wifi alone might make this card price it. Add in anniversary factors and robust rewards charges for Southwest purchases and you will greater than recoup the annual price.
Rewards Charges
- 3x 3X factors on Southwest® purchases
- 2x 2X factors on Fast Rewards® lodge and automotive rental companions, native transit and commuting, together with rideshare, web, cable, and cellphone providers; 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 Cross
- Overseas transaction price: None
at Cardratings.com
Be taught extra: Greatest journey bank cards.
What’s Not Altering
Earlier than you begin considering Southwest’s turning into simply one other large airline, let’s discuss what’s staying the identical. You’ll nonetheless get two free checked baggage, and so they’re holding their no change price coverage the place you may simply rebook if costs go down. In an period the place most airways nickel and dime you for all the pieces, these insurance policies proceed to set Southwest aside.
Fast Rewards factors will nonetheless don’t have any blackout dates, received’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 bought just a few 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 trying to maximize their time and decrease lodge nights.
- Operational efficiencies: Southwest is engaged on sooner plane turnaround instances and different measures to optimize its operations. Whereas this won’t sound thrilling, it might imply fewer delays and a smoother journey expertise, which is particularly mandatory after the notorious meltdown of December 2022.
The takeaway
These adjustments might open up some fascinating potentialities for journey. Utilizing Fast 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.
However 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 stability, but when they pull it off, it may very well be a win for vacationers.
The important thing will probably be within the execution: Can they implement these adjustments whereas sustaining the pleasant, environment friendly service they’re recognized for? Both approach, I believe it’s going to be fairly the experience.
Welcome to What’s in Dia’s pockets. On this month-to-month column I’ll share what’s, sure, in my pockets but in addition what’s on my thoughts. After over a decade overlaying bank cards, touring a median of 100 nights a yr, and incomes and spending over one million factors annually to do it, I’ve discovered just a few 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 could obtain a fee from card issuers.
Please word 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.