Southwest Airlines Unveils Major Credit Card Overhaul With New Perks And Higher Fees

Southwest Airlines announced a comprehensive refresh of its credit card lineup, introducing new benefits while significantly increasing annual fees across all cards. The Dallas-based carrier revealed on Thursday that cardholders will now enjoy enhanced perks, including complimentary seat selection, early boarding privileges, and new bonus point earning categories for everyday purchases such as restaurants, groceries, and gas stations.

The changes come amid Southwest’s broader business model transformation, which has already seen the airline abandon its signature open seating policy, implement checked bag fees, and revamp its Rapid Rewards loyalty program. Perhaps most notably, holders of the airline’s premium cards will gain complimentary access to Southwest’s new extra-legroom seats when available, within 48 hours of departure. The revamped benefits will come at a cost, with annual fee increases averaging around 50% across Southwest’s card portfolio.

New Premium Benefits And Annual Fees: What Southwest Airlines Cardholders Need To Know

Annual fees are increasing substantially across all five Southwest credit cards. According to The Points Guy, the entry-level Southwest Rapid Rewards Plus Card jumps from $69 to $99, while the top-tier Southwest Rapid Rewards Performance Business Card rises from $199 to $299. Existing cardholders won’t see these increases until their 2026 anniversary date.

All Southwest cardholders will also continue receiving their first checked bag free, a benefit that extends to up to eight travelers on the same reservation. This perk has gained value since Southwest began charging $35 for the first checked bag in late May, ending its long-standing policy of free baggage. Additionally, the new card benefits directly address Southwest’s seating policy changes.

Priority and Performance Business cardholders can select standard or preferred seats at booking and access extra-legroom seats within 48 hours of departure at no additional cost. Premier and Premier Business cardholders can choose standard or preferred seats within 48 hours, while Plus cardholders can select standard seats within the same timeframe.

Revamped Earning Categories Focus On Everyday Spending

Southwest has shifted bonus categories to reward everyday spending rather than travel-specific purchases. The Priority Card now offers 4 points per dollar on Southwest purchases (up from 3 points) and 2 points per dollar at gas stations and restaurants, with no annual cap.

Meanwhile, Premier cardholders earn 2 points per dollar on groceries and restaurants, and Plus cardholders earn 2 points per dollar at gas stations and grocery stores. New applicants can earn 100,000 Rapid Rewards points after spending $4,000 within the first five months. Southwest’s credit card refresh represents the latest phase in the airline’s business model transformation.

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