Southwest Massively Cuts Points Earning, Slaughters Rapid Rewards

Southwest has seemingly just completely changed the value proposition of its Rapid Rewards program, with absolutely no advance notice, as flagged by View form the Wing. Honestly, this might be the single most ruthless frequent flyer program change we’ve seen from a major airline.

Southwest reduces points earning by up to 67%

With absolutely no advance notice, Southwest Rapid Rewards has completely changed its points earning structure:

• Wanna Get Away fares have gone from earning 6x points to earning 2x points
• Wanna Get Away Plus fares have gone from earning 8x points to earning 6x points
• Anytime fares continue to earn 10x points
• Business Select fares have gone from earning 12x points to earning 14x points

As you can see, clearly Southwest wants to incentivize Rapid Rewards members to book more expensive fares. On the low end, we’re seeing points earning reduced by 67%, and on the high end, we’re seeing points earning increased by 17%.

The changes are even bigger if you have elite status, since A-List members receive a 25% bonus, and A-List Preferred members earn a 100% bonus.

So an A-List Preferred member booking a Wanna Get Away fare would go from earning 12x points per dollar spent to earning 4x points per dollar spent.

For what it’s worth, I value Rapid Rewards points at around 1.2 cents each. So by my valuation of points, Wanna Get Away fares are basically offering the equivalent of a 2.4% return on airfare spending after these changes. Ouch.

What an unbelievably brutal loyalty program change

We know that Southwest is under major pressure to improve profitability, given the activist investor the company has, in the form of Elliott Investment Management. So we know the airline is looking for any possible way to improve its margins.

However, I don’t think I’ve ever seen this significant of a frequent flyer program change, whereby the most common fare sees a 67% reduction in points earning. There’s absolutely zero advance notice being provided here, and these changes aren’t just minor, but completely alter the value proposition of the program for many members.

It’s clear the “old” Southwest has died, and it’s not coming back. For example, the company recently announced its first layoffs in history, when lack of layoffs was historically a point of pride at the airline. It’s sad to see how everything the airline has been working on for decades is just being flushed down the toilet…

Bottom line

Southwest has just made massive changes to its Rapid Rewards program, without advance notice. The airline has hugely cut points earning on cheaper fares, and has mildly increased points earning on the most expensive fare. I can’t remember a major frequent flyer program that ever made such a significant change without notice.

What do you make of these Rapid Rewards changes?