Southwest Airlines Flight Credits Now Expire After 6-12 Months

Southwest Airlines has been reeling back its customer-first approach. This began when it took away free checked bags, and free seating. And now, it has implemented significant changes in its credit program.

As of May 28, 2025, the airline has reintroduced expiration dates for flight credits. It’s not a surprise that they’re doing this, but that doesn’t exactly mean anyone’s happy about this. The move has drawn criticism from their loyal customers, and I’m inclined to agree.

For years, Southwest was one of the few remaining airlines offering travelers this flexibility. This abrupt reversal ends the airline’s three-year experiment with perpetual credits. The policy, introduced in the pandemic era, was one of the things that made it stand out from its rivals.

But that's in the past now, under the new policy:

• Basic Fares: Flight credits expire six months from the date of ticket purchase.
  
• Wanna Get Away Plus, Anytime, and Business Select Fares: Flight credits expire 12 months from the date of ticket purchase.

One thing to note is that these expiration periods are calculated from the original purchase date, not the date of cancellation or change. So you can’t book a flight in advance and cancel close to the departure date, because then you wouldn’t have that leaves you with a very short window to use the credit.

Flight credits issued before May 28, 2025, will retain their non-expiring status. But if you use those old credits to book a flight and then cancel, they’ll be subject to the exp

The expiration of flight credits is part of a broader overhaul of Southwest's policies:

• Checked Baggage Fees: As of a few days ago, the long-standing "bags fly free" policy has also ended. Now, only Business Select customers and A-List Preferred members receive two free checked bags. A-List members and Rapid Rewards Credit Card holders are entitled to one free checked bag. All other passengers will incur fees of $35 for the first bag and $45 for the second.
  
• Fare Structure: A new "Basic" fare has been introduced, replacing the "Wanna Get Away" fare. This fare is more restrictive, offering fewer benefits and less flexibility.
  Assigned Seating: Southwest plans to phase out its open seating policy, transitioning to assigned seating starting in early 2026. Seat selection will be based on fare class, with higher-tier fares offering more favorable seating options.
  

There's one major actor behind the shift, Elliot Investment Management, which acquired a $1.9 billion stake in Southwest and pushed to "mirror" competitors’ revenue tactics. Some other changes they’ve forced in policy include:

New baggage fees ($35 for first bag, $45 for second)

Abandoning open seating by 2026

Even the airline's first-ever corporate layoffs (amounting to around 1750 jobs cut) can be traced back to Elliot. To the investors, the never-expiring credits must be like leaving money on the table, and it all comes down to the bottom line.

Adding an expiration date means more credits will quietly expire, giving Southwest a little extra financial breathing room. Plus, the change nudges you to actually use your credits sooner, which could mean more bookings and maybe a few upsells along the way.

CEO Bob Jordan said the airline needs to make changes to “return to the levels of profitability that both we and our shareholders expect.”

Bob Jordan, who narrowly escaped a boardroom coup orchestrated by Elliott.

Southwest is following an industry trend of following profits over perks, but if you ask me, they’re taking away everything that sets them apart from every other airline. These changes risk alienating their customer base that was built on Southwest's unique, customer-centric approach.

But who knows? Maybe this change will work for them. We’ll just have to wait and see.