SOUTHWEST AIRLINES OFFERS RAPID REWARDS MEMBERS LIMITED-TIME PROMOTION TO ACCELERATE TO A-LIST OR A-LIST PREFERRED TIER STATUS

Rhea-AI Summary

Southwest Airlines (NYSE: LUV) has announced the return of its -time tier acceleration promotion for Rapid Rewards Members. The promotion offers four ways to earn A-List or A-List Preferred tier status faster through Dec. 31, 2025:

• Double tier qualifying points on flights through Nov. 30, 2024
• Reward travel counts towards tier status
• Earn with Southwest Rapid Rewards Credit Cards from Chase
• Earn with Rapid Rewards partners (new feature)

The promotion aims to provide members with faster access to benefits such as earlier boarding, boosted points, free same-day standby, and same-day change. A-List Preferred members also enjoy free WiFi and premium drinks.

Positive

• Offering multiple ways for customers to earn tier status faster, potentially increasing customer loyalty
• Inclusion of reward travel towards tier status, making it easier for frequent flyers to achieve higher status
• New feature allowing members to earn tier status through partner purchases, expanding earning opportunities
• Potential increase in credit card usage and partner engagement due to promotional incentives

Negative

• -time nature of the promotion may not provide long-term benefits to the company
• Offering more ways to achieve higher tier status could potentially dilute the exclusivity of these tiers

Insights

Market Research Analyst

Southwest Airlines' -time tier acceleration promotion is a strategic move to boost customer loyalty and engagement. By offering multiple pathways to achieve A-List or A-List Preferred status, Southwest is incentivizing increased travel and spending among its Rapid Rewards members. This promotion could lead to higher revenue per customer and improved retention rates.

The inclusion of reward travel and partner spending in tier qualification is particularly noteworthy. This broadens the promotion's appeal and encourages members to interact more with Southwest's ecosystem. However, the promotion's impact may be by its short duration (through November 30, 2024) and the ongoing challenges in the airline industry, such as fuel costs and economic uncertainties.

While this promotion might boost short-term revenue, its long-term effect on profitability is less clear. The additional perks offered to A-List members (e.g., free WiFi, premium drinks) could increase operational costs. Investors should monitor the promotion's uptake and its impact on Southwest's financial performance in the coming quarters.

Financial Analyst

From a financial perspective, this promotion is a double-edged sword. On one hand, it could drive increased revenue through higher ticket sales and credit card spending. The partnership with Chase for the Rapid Rewards Credit Cards is particularly valuable, as it could lead to increased non-airline revenue through credit card fees and partner transactions.

However, the promotion also carries potential financial risks. Accelerating customers to higher tier statuses more quickly could lead to increased costs associated with providing premium services and perks. This could potentially squeeze margins if not carefully managed.

It's worth noting that Southwest has maintained 47 consecutive years of profitability until 2019, showcasing its historical financial strength. However, the airline industry has faced significant challenges since then. Investors should closely monitor how this promotion impacts Southwest's load factors, revenue per available seat mile (RASM) and overall profitability in the short to medium term.

Members have four opportunities to achieve tier status faster through Dec. 31, 2025

DALLAS, Aug. 28, 2024 /PRNewswire/ -- Southwest Airlines Co. (NYSE: LUV) announces the return of its limited-time tier acceleration promotion, making it easier for Southwest Rapid Rewards^® Members to earn tier status through 2025. Starting today, Rapid Rewards^®1 Members have four opportunities to accelerate their way to the highly coveted A-List or A-List Preferred tier status: qualifying flight purchases, qualifying flight purchases with Rapid Rewards points, Southwest Rapid Rewards Credit Cards from Chase purchases, and Rapid Rewards partner spend. Visit Southwest.com^® for the full list of terms and conditions.

"We're bringing back this popular promotion to give our Rapid Rewards Members an extra boost to reach our coveted A-List and A-List Preferred tier status faster, so they can take advantage of all the benefits that our Rapid Rewards program has to offer, such as earlier boarding, boosted points, free same-day standby,² and same-day change,^3" said Jonathan Clarkson, Vice President & Chief Product Officer at Southwest Airlines. "A-List Preferred Members can enjoy all the same benefits plus free WiFi,⁴ and premium drinks.⁵"

Earn Double Tier Qualifying Points on Flights
Southwest Rapid Rewards Members who register for this promotion, purchase Southwest^® qualifying flights, and travel through Nov. 30, 2024, can earn double tier qualifying points that count toward A-List or A-List Preferred tier status for the remainder of 2024 and through Dec. 31, 2025.⁶ Southwest Business travelers also benefit by booking through Southwest Business channels (SWABIZ.com, GDS, or SPS) for the individual traveler to earn three times the tier qualifying points per flight for travel through Nov. 30, 2024.⁶

Reward Travel Counts
Southwest Airlines^® makes travel even more rewarding by applying reward travel toward tier status segment requirements. Every one-way qualifying flight segment purchased and traveled using Rapid Rewards^® points or Rapid Rewards Business points counts as one tier qualifying flight segment when Customers register for this promotion, purchase Southwest qualifying flights, and travel through Nov. 30, 2024.⁷

Earn with Southwest Rapid Rewards Credit Cards from Chase
Rapid Rewards Credit Cardmembers who register for this promotion can earn their way to tier status faster with credit card spending. From Sept. 1, 2024, through Nov. 30, 2024, Southwest Rapid Rewards Credit Cardmembers can earn 2,000 tier qualifying points for every $5,000 in purchases made with their Rapid Rewards Priority, Premier, and Plus Consumer Credit Cards, as well as Premier, Plus, and Performance Business Credit Cards from Chase. These tier qualifying points are in addition to current tier qualifying points that Cardmembers already earn.⁸

New! Earn with Rapid Rewards Partners
For the first time, Members can earn their way to tier status with qualifying purchases made with Rapid Rewards car rentals, hotel bookings, and other select Rapid Rewards partners. Every base point earned on qualifying purchases made with select Rapid Rewards partners between now and Nov. 30, 2024, counts as one tier qualifying point, up to a maximum of 5,000 total tier qualifying points. ⁹

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.
²On the day of travel, Customers can switch free of airline charges to another flight with space available departing on the same calendar day between the same origin airport and destination airport as their original flight. With the exception of A-List Preferred and A-List Members, Customers who purchase Wanna Get Away fares are not eligible for free same-day change.
³Fare difference may apply. Failure to cancel a reservation at least 10 minutes prior to scheduled departure may result in forfeited flight credits.
⁴Where available. Available only on WiFi-enabled aircraft. Limited-time offer.
⁵On flights traveling 176 miles or more, A-List Preferred Members receive up to two complimentary premium drinks per leg. Flights traveling 175 miles or less only serve water. Drink coupons are subject to availability. Service may also be limited at Southwest's discretion. This coupon has no cash value. Drink coupon is void if altered, sold, purchased, brokered, or bartered. Non-exchangeable for other goods or services. Southwest Airlines reserved the right to discontinue its drink coupon program at any time. Coupon is invalid after expiration date and will not be updated or replaced. Must be 21 or older to consume alcoholic beverages. Alcohol purchased with drink coupons must be consumed onboard the aircraft. Beverage options may change at any time and are subject to availability.
⁶Tier qualifying points are earned on qualifying flights paid entirely with dollars, Southwest LUV Vouchers^®, gift cards or flight credits, and with no portion of the purchase price paid for with Rapid Rewards points. Only qualifying activity will be eligible for tier qualifying points. Tier qualifying points aren't eligible to use for redemption toward flights or with More Rewards. Only the Rapid Rewards Member who received this offer from Southwest Airlines is eligible for this promotion. The offer is nontransferable. Bonus tier qualifying points earned from this offer will post prior to Dec. 30, 2024. To qualify for this bonus offer, the Member's Rapid Rewards Credit Card account must be open and not in default at the time of fulfillment. Chase isn't responsible for the provision of, or failure to provide, the stated benefits and services. Bonus tier qualifying points will post directly to the Members' Southwest Rapid Rewards account and won't appear on the Members' credit card statement. A qualifying flight for the triple tier qualifying points promotion is not also eligible for the double tier qualifying points promotion. 
⁷All reward travel is subject to availability and taxes, fees, and other government on airport-imposed charges of at least $5.60 per one-way. Tier qualifying points are not eligible to use for redemption toward flights or with More Rewards. Only the Rapid Rewards Member who received this offer from Southwest Airlines is eligible for this promotion. The offer is nontransferable. A flight segment is defined as a one-way trip booked through Southwest from an origin city to a destination city, including any intermediate stops and/or connections on Southwest.
⁸To be eligible for this bonus tier qualifying points offer, the Cardmember must register between Sept. 1 and Nov. 30, 2024 ("Promotion Period"). During the Promotion Period Cardmembers will earn 2,000 bonus tier qualifying points for every $5,000 in purchases made with a Southwest Rapid Rewards Credit Card. Bonus tier qualifying points earned from this offer will be deposited within six weeks after the end of each month and by Dec. 30, 2024, for November purchases. The bonus tier qualifying points will post to the Cardmember's Southwest Rapid Rewards account. "Purchases" don't include balance transfers, cash advances, traveler's checks, foreign currency, money orders, wire transfers or similar cash-like transactions, lottery tickets, casino gaming chips, racetrack wagers or similar betting transactions, any checks that access a Member's account, interest, unauthorized or fraudulent charges, or fees of any kind, including an annual fee, if applicable. Tier qualifying points aren't eligible to use for redemption toward flights or with More Rewards. Only the Rapid Rewards Member who received this offer from Southwest Airlines is eligible for this promotion. The offer is nontransferable. Chase isn't responsible for the provision of, or failure to provide, the stated benefits and services. Bonus tier qualifying points will post directly to the Member's Southwest Rapid Rewards account and won't appear on their credit card statement. To qualify for this bonus offer, the Cardmember's Rapid Rewards Credit Card account must be open and not in default at the time of fulfillment. The Contactless Symbol and Contactless Indicator are trademarks owned by and used with the permission of EMVCo, LLC.JPMorgan Chase Bank, N.A. Member FDIC. The Southwest Rapid Rewards Credit Card is brought to you by Southwest Airlines and Chase. Southwest Airlines is responsible for the redemption of Rapid Rewards points toward benefits and services. 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. Rapid Rewards points can only be transferred to the primary Cardmember's Rapid Rewards account. 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 program and/or program rules at any time without notice. Rapid Rewards Members don't acquire property rights in accrued points.
⁹Base points earned from qualifying purchases made with select Rapid Rewards partners will qualify as tier qualifying points, up to a maximum of 5,000 tier qualifying points earned per Member during the Promotion Period. Eligible Rapid Rewards partners include Southwest Hotels, car rentals through Southwest.com, Rapid Rewards Shopping, Rapid Rewards Dining, Laithwaites, 1-800-FLOWERS, Reliant Energy, NRG Energy, Xoom, Energy Plus, Harry and David, and Rewards for Opinions.

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 airline¹⁰. 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 74,000¹¹ 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 years¹² 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 2050¹³. Southwest has also set near-term targets and a three-pillar strategy to achieve its environmental goals. Learn more by visiting Southwest.com/planet. 

¹⁰Based on U.S. Dept. of Transportation quarterly Airline Origin & Destination Survey since Q1 2021 
¹¹Fulltime-equivalent active Employees 
¹²1973-2019 annual profitability 
¹³Our 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 does Southwest Airlines' (LUV) tier acceleration promotion end?

The tier acceleration promotion for Southwest Airlines (LUV) ends on December 31, 2025.

What are the four ways to earn A-List or A-List Preferred status in Southwest's (LUV) promotion?

The four ways are: qualifying flight purchases, qualifying flight purchases with Rapid Rewards points, Southwest Rapid Rewards Credit Cards from Chase purchases, and Rapid Rewards partner spend.

How many tier qualifying points can Southwest (LUV) Rapid Rewards Credit Cardmembers earn in the promotion?

Southwest (LUV) Rapid Rewards Credit Cardmembers can earn 2,000 tier qualifying points for every $5,000 in purchases made with eligible cards from September 1, 2024, through November 30, 2024.

What new feature has Southwest Airlines (LUV) added to its Rapid Rewards program in this promotion?

Southwest Airlines (LUV) has added the ability for members to earn tier status through qualifying purchases made with select Rapid Rewards partners, including car rentals, hotel bookings, and other partners.