SOUTHWEST AIRLINES BRINGS BACK ITS LIMITED-TIME COMPANION PASS PROMOTION!

Rhea-AI Summary

Southwest Airlines (NYSE: LUV) has announced the return of its popular Companion Pass promotion. Rapid Rewards Members who register and purchase a qualifying flight between Sept. 3-5, 2024, and travel by Nov. 20, 2024, can earn a promotional Companion Pass valid from Jan. 6 to March 6, 2025. This pass allows a designated companion to fly for free (excluding taxes and fees) on flights purchased by the Member.

For the first time, Members can use Rapid Rewards points, a combination of cash and points, or other eligible forms of payment for qualifying flights. The promotion aims to showcase the benefits of Southwest's Rapid Rewards program, which offers no blackout dates and non-expiring points. This -time offer provides an opportunity for Members to experience one of the airline's most valued perks.

Positive

• Offering a popular promotion that could increase customer loyalty and flight bookings
• Expanding payment options for qualifying flights, including points and cash+points combinations
• Potentially driving short-term revenue growth through increased bookings during the promotion period

Negative

• promotional period (Sept. 3-5, 2024) may restrict customer participation
• Short validity of the earned Companion Pass (Jan. 6 - March 6, 2025) could limit its value to customers

Insights

Marketing Analyst

Southwest Airlines' revival of the Companion Pass promotion is a strategic move to boost customer loyalty and stimulate demand. This -time offer could drive a short-term surge in bookings, particularly appealing to budget-conscious travelers and frequent flyers.

The promotion's timing, coinciding with the post-holiday travel lull, is clever. It may help fill seats during a traditionally slower period. The inclusion of Cash + Points bookings in this promotion is a noteworthy expansion, potentially increasing the program's appeal and accessibility.

However, the narrow booking window (Sept 3-5) and restricted travel periods could limit the promotion's overall impact. While it may generate buzz and short-term revenue, its long-term effect on Southwest's financials is likely to be modest.

Financial Analyst

This promotion, while attractive to consumers, has mixed financial implications for Southwest. On the positive side, it could drive increased revenue in the short term by stimulating bookings during the promotion period and the subsequent travel window.

However, the offer of free companion travel from January to March 2025 may impact yield management and potentially reduce revenue per available seat mile (RASM) during that period. The promotion's costs in terms of foregone revenue will need to be carefully balanced against the customer acquisition and loyalty benefits.

Investors should note that while such promotions can boost short-term metrics, their impact on long-term profitability is often The true value lies in Southwest's ability to convert these promotional customers into loyal, higher-yield passengers over time.

DALLAS, Sept. 3, 2024 /PRNewswire/ -- Southwest Airlines Co. (NYSE: LUV) announces the return of its highly-coveted Companion Pass^® promotion. The airline's Companion Pass allows Rapid Rewards^®1 Members to designate one person to fly with them for free² every time the Member purchases or redeems points for a flight.

"We love offering this Companion Pass promotion because it allows our Members to experience one of the many benefits of our award-winning Rapid Rewards program," said Jennifer Bridie, Vice President of Marketing at Southwest Airlines. "Earlier this year, we launched Cash + Points, giving our Customers extra flexibility to make their points go further. And now, for the first time, Members can use their Rapid Rewards points, a combination of cash and points, or other eligible forms of payment to book qualifying flights that count toward this Companion Pass promotion."

To qualify, Rapid Rewards Members must:³

1. Register for the promotion and purchase a qualifying Southwest^® flight (one round trip or two one-way qualifying flights), starting today through Sept. 5, 2024.
2. Travel by Nov. 20, 2024; and
3. Designate a Companion to fly for free¹ with them between Jan. 6, 2025, and March 6, 2025.

Visit Southwest.com for the full list of terms and conditions.

Join Rapid Rewards
The Southwest Rapid Rewards program is designed around a simple concept—to make earning reward flights faster and easier. With Rapid Rewards, every seat is a reward seat, there are no blackout dates, and points don't expire.¹ Customers can create an account to become a Rapid Rewards Member at Southwest.com to take advantage of Southwest's award-winning loyalty program benefits.

TERMS & CONDITIONS
Visit Southwest.com for the full list of terms and conditions.
¹All Rapid Rewards rules and regulations apply and can be found at Southwest.com/rrterms.
²Doesn't include taxes and fees from $5.60 one-way. Must include Rapid Rewards number during booking. Limited time. Restrictions apply. Qualifying flight(s) must be flown by the same Member.
³Members can register for this promotion, then book one round trip or two one-way qualifying Southwest flights between 8:00 a.m. Central Time ("CT") on Sept. 3, 2024, and 11:59 p.m. CT on Sept. 5, 2024, (the "Promotion Period") for travel from Sept. 3, 2024, and Nov. 20, 2024, (the "Travel Period"), and fly during the Travel Period to earn a promotional Companion Pass valid for use between Jan. 6, 2025, and March 6, 2025. To register for this promotion, Members will need to provide their Southwest Rapid Rewards account number at the time of registration. If a Customer doesn't have a Rapid Rewards account number, they may register for an account by going online to Southwest.com/rapidrewards to become a Member. Rapid Rewards accounts are free. Member must register for this promotion, book one round trip or two one-way qualifying Southwest flights during the Promotion Period for travel during the Travel Period, and fly during the Travel Period. Registration must be completed prior to booking and commencement of travel. Valid on new qualifying flights booked during the Promotion Period for travel during the Travel Period and flown within the Travel Period. Member's qualifying flight must be booked through Southwest.com or swabiz.com during the Promotion Period for travel that must be completed during the Travel Period. Member's Rapid Rewards account number must be entered at the time of booking Member's qualifying flight to earn a promotional Companion Pass valid for use between Jan. 6, 2025, and March 6, 2025. A qualifying one-way flight for this promotion is a one-way flight on Southwest Airlines from an origin city to a destination city, including any intermediate stops and/or connections on Southwest Airlines. A qualifying round trip flight for this promotion is a round trip flight on Southwest Airlines from an origin city to a destination city and back to the originating airport or carrier-recognized co-terminal. Valid on new reservations booked within the Promotion Period for travel during the Travel Period only. Travel booked or flown prior to registration for this promotion is not eligible for this promotional Companion Pass offer. Reward travel and Cash + Points bookings qualify for this promotional offer. Companion Pass, charter flights, reward or group travel, and Southwest Vacations^® packages do not qualify as one-way or round trip flights for this promotion. Qualifying flights(s) booked with Cash + Points will qualify as round trip or two one-way revenue flights for this promotion. Changes made to any itinerary after purchase of a round trip or two one-way revenue flights may eliminate qualification for this promotion. The promotional Companion Pass is valid from Jan. 6, 2025, through March 6, 2025, and allows Members to designate one person to fly with them, free of airline charges (doesn't include taxes and fees from $5.60 one-way) on flights purchased by the Member, booked through Southwest, and completed between Jan. 6, 2025, and March 6, 2025. No Rapid Rewards points nor tier or Companion Pass qualifying points will be awarded for flights taken by the Companion when flying on a promotional Companion Pass or Companion Pass reservation. Members may change their designated Companion up to three times while they have the promotional Companion Pass. If a Member earns Companion Pass in 2024 by earning 135,000 Companion Pass qualifying points or flying 100 qualifying flights, any changes to their designated Companion during the time they have a promotional Companion Pass will reduce the number of changes they can make to their designated Companion in the 2025 calendar year. For example, if a Member earn a promotional Companion Pass through this promotion, change their designated Companion twice during the validity period for promotional Companion Pass, and later in 2025 earn Companion Pass, they would only be able to change their designated Companion one more time in 2025. Companion Pass is nontransferable. All Rapid Rewards rules and regulations apply and can be found at Southwest.com/rrterms. Southwest reserves the right to amend, suspend, or change the Rapid Rewards program and/or Rapid Rewards program rules at any time without notice. Rapid Rewards Members don't acquire property rights in accrued points. The number of points needed for a particular Southwest flight is set by Southwest and will vary depending on destination, time, day of travel, demand, fare type, point redemption rate, and other factors, and is subject to change at any time until the booking is confirmed.

ABOUT SOUTHWEST AIRLINES CO.    
Southwest Airlines Co. operates one of the world's most admired and awarded airlines, offering its one-of-a-kind value and Hospitality at 117 airports across 11 countries. Southwest took flight in 1971 to democratize the sky through friendly, reliable, and low-cost air travel and now carries more air travelers flying nonstop within the United States than any other airline⁴. Based in Dallas and famous for an Employee-first corporate Culture, Southwest maintains an unprecedented record of no involuntary furloughs or layoffs in its history. By empowering its more than 74,000⁵ People to deliver unparalleled Hospitality, the maverick airline cherishes a passionate loyalty among more than 137 million Customers carried in 2023. That formula for success brought industry-leading prosperity and 47 consecutive years⁶ of profitability for Southwest Shareholders (NYSE: LUV). Southwest leverages a unique legacy and mission to serve communities around the world including harnessing the power of its People and Purpose to put communities at the Heart of its success. Learn more by visiting Southwest.com/citizenship. As the airline with Heart, Southwest has set a goal to work toward achieving net zero carbon emissions by 2050⁷. Southwest has also set near-term targets and a three-pillar strategy to achieve its environmental goals. Learn more by visiting Southwest.com/planet.  

⁴Based on U.S. Dept. of Transportation quarterly Airline Origin & Destination Survey since Q1 2021  
⁵Fulltime-equivalent active Employees       
⁶1973-2019 annual profitability     
⁷Our net zero by 2050 goal includes Scope 1, Scope 2, and Scope 3 Category 3 emissions only and excludes any emissions associated with non-fuel products and services, such as inflight service items. 

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SOURCE Southwest Airlines Co.

FAQ

When is Southwest Airlines (LUV) offering its Companion Pass promotion in 2024?

Southwest Airlines is offering its Companion Pass promotion from September 3 to September 5, 2024.

What are the requirements to earn the promotional Companion Pass for Southwest Airlines (LUV)?

To earn the promotional Companion Pass, Rapid Rewards Members must register for the promotion, purchase a qualifying Southwest flight (one round trip or two one-way flights) between Sept. 3-5, 2024, and complete travel by Nov. 20, 2024.

When can the earned Southwest Airlines (LUV) promotional Companion Pass be used?

The earned promotional Companion Pass can be used between January 6, 2025, and March 6, 2025.

What payment methods can be used for qualifying flights in Southwest's (LUV) Companion Pass promotion?

For the first time, Members can use Rapid Rewards points, a combination of cash and points, or other eligible forms of payment to book qualifying flights for this Companion Pass promotion.