Southwest Airlines Devaluation
“I was thinking how nothing lasts, and what a shame that is,” Benjamin Button mentioned a few years back. That certainly applies to the Southwest Airlines devaluation many travelers are facing. I write this on 27 May, the day before the overwhelmingly negative changes are effective. I could scurry around, book speculatively, and avoid them for a little while longer, but I won’t. It ain’t worth it to me. Indeed, hardly anything with Southwest is anymore. I’ve been quietly moving on from Southwest for years, and the recent developments only underscore my decision. These are just a few reasons Southwest’s no longer a good fit in my situation.
Limited Needs
Perhaps the most obvious part is we hardly have a need for Southwest anymore. The biggest advantage Southwest has for us is on non-stop routes no other airline services. That’s now the only advantage, given the recent changes; more on that below. And even this advantage is relatively niche. Southwest only has four year-round non-stop flights from my regional airport:
- Baltimore
- Chicago Midway
- Nashville
- Orlando
Given our location, driving to Baltimore is more sensible than flying. We enjoy Chicago but have non-stops with American (while leveraging Executive Platinum status) and United (paid with Travel Bank) there. Our biggest use of Southwest the past several years has been to Orlando, but driving there often wins out, anyway. Two budget airlines fly to Orlando, and I’ve even chosen a connection on AA over Southwest in the past. I could see flying Southwest to Nashville but have no immediate plans there. I’m more of a Memphis guy, anyway.
So our Southwest needs are flimsy, at best. I imagine we’ll zero out my Rapid Rewards balance on Orlando family trips over the next few years. But at this rate, my balance may only supply one of those. That conundrum’s next.
The Biggest Devaluation For Us
Historically, we used the vast majority of our Rapid Rewards points on family travel. Not coincidentally, this is also when we checked bags most often. We’d take advantage of free baggage while redeeming on the cheapest Wanna Get Away fares. Effective tomorrow, booking similar fares means paying $35 for the first checked bag. We don’t hold any Southwest credit cards and have no interest in achieving their elite status. We cannot ignore that overnight what we obtain with our Southwest points rapidly devalues. We’re faced with either forking over cash money for something that came with the previous points redemption or using more points to book a higher award fare including free checked bags. Eew.
Goodbye, Flexibility
On bookings made tomorrow and into perpetuity, Southwest flyers will have less flexibility with their flight credits. Almost three years ago, Southwest did away with flight credit expiration dates. But expiration dates are returning. Any flight credits issued for tickets purchased starting tomorrow will expire one year from the date of ticketing. Even worse, Basic fares only get six months. That limitation takes some shine off any good deal.
Hello, Obfuscation
With Southwest’s changes, the airline and their loyalty program becomes more complicated. Doing big things will be more challenging. This creates a more significant barrier to maximizing the program, something certain gearheads can leverage. Kudos to them, but I have no stomach for it.
Southwest Airlines Devaluation – Conclusion
Perhaps the most comical part of the changes is what many are perceiving as an improvement. Southwest will now offer assigned seating! Congratulations, everyone. You’re now getting what the big three domestic airlines and others have provided for years, often at a better deal than what Southwest has offered.
Sometimes-funny pilots and cheerful flight attendants can’t overcome these devaluations. As my Southwest points balance approaches zero, so does my interest. I doubt the airline will do anything to bring flyers like me back, nor do they care. I just can quit you, Southwest.
How are you adapting based on tomorrow’s Southwest Airlines devaluation?
No impact. I cant get a nonstop out of my delta hub captuve airport and i wont do cattle call boarding. Have never flown them and never will.
The National Airline of Texas has lost its way.
No longer using my SW credit card to get points. Once my points are all used up, I will use another airline.
Not sure what it means for us yet but i worry how it bodes for the industry in general (and for their flying customers- us). Why give up such a winning strategy unless one has to?
But, Southwest stopped winning and they were starting to lose. So, yes, they had to.
It’s very simple. Investors looked at the number of SWA passengers + bags and counted that as $35 times X million number of bags flying FREE. The board folded. Either they could care less or figured a leverage buyout was coming and they would lose their cushy free flights and $200k a year as they would get replaced as board members so they went along. Wall Street is set up to report earnings + growth EVERY 90 days. They don’t care if SWA goes under anyway, they got in annd out and can write off loses if it comes to that … just like Toys R Us was profitable until a fund bought the company, loaded it with debt to pay themselves back, sold out the land and declare bankruptcy Got the writeoff. We pay for the unemployment of thoysands – to them, it’s just $X billions sitting there for “free.” It’s like clear cutting a million acres, who cares about tomorrow,
Bed Bath & Beyond, Pier One Imports, Toys R Us, etc. all went under because the dynamics of the marketplace changed. It’s trite to blame a company’s failure or challenging times on evil hedge fund managers and Wall Street types. Never mind how many years Tiger Management owned US Airways. Never mind Warren Buffett is a long-term buy-and-hold guy.
There was a time when Southwest’s “system” worked financially for the company and for customers. But, that system stopped working financially. Something changed. Don’t know what or how. As a result, the company and customers adapted. Because the company and we have changed, it’s not possible to go back to the way it was. It’s just part of the past. It’s kind of like the neighborhood you grew up in. Fond memories but never again.
Interesting comparison, Lee!
Well, living in St. Louis, a large WN operation, means that it will always be an option for me. I rarely fly with more than a carry-on and personal item so the bag fees mean next to nothing for me. Given their recent morphing however, they might as well become a legacy, order 787’s or A-330’s and just go for it as the 4th legacy carrier with long haul service.
More power to you, ChuckMO!