What’s in Dia’s pockets: Southwest Airways spreads the luv with a brand new companion: Icelandair

However Southwest isn’t stopping there. They’re planning so as to add a minimum of yet another worldwide companion subsequent yr. It’s a wise transfer that’ll assist them compete with the massive legacy carriers with out the large funding of launching their very own long-haul routes. This might imply extra choices for utilizing your Speedy Rewards factors and probably accessing a wider vary of locations.

Southwest’s being coy with the small print, however they’re hinting at some modifications to Speedy Rewards, too. Suppose worldwide flight redemptions and higher perks for A-Listing and A-Listing Most popular members. I’m curious to see how this performs out. Will we see higher redemption charges for worldwide flights? Extra methods to earn tier qualifying factors? The probabilities are intriguing.

Why Icelandair makes good sense for Southwest

Icelandair, very similar to Copa Airways, operates a hub-and-spoke community between the U.S. and Europe. With 34 locations in Europe they’ve just about obtained the continent lined with planes which can be much like these you’d anticipate doing flights inside the U.S., with a enterprise class that extra resembles a home firstclass seat than a lie-flat one. For me, that’s not well worth the upcharge. 

I’m not somebody who’s frightened a few lie-flat seat for each single flight over the pond. The flight time from BWI to Reykjavik (KEF) is about six hours, nearly the identical as a transcon or a latest flight I took from D.C. to Cancun. That’s not an period of time that may kill me to be in an everyday seat, particularly if the value is true. 

And the value is what excites me most. Icelandair’s BWI-KEF flights usually go beneath $500 round-trip in economic system, and if Southwest retains the identical redemption fee of round 1.4 cents, meaning these flights may go for round 35,000 Speedy Rewards round-trip in economic system. In fact we don’t know the small print but, however I can’t wait to seek out out. 

The top of the Southwest scramble?

Right here’s a shocker: Southwest’s introducing assigned seating. I do know, it’s onerous to think about Southwest with out the mad sprint to say your spot. However based on a Southwest survey, 80% of their prospects need this alteration. Depend me firmly on this camp. I received’t miss checking in 23 hours and 59 minutes earlier than my flight to get rewarded with the dreaded “C” boarding group. 

And if you happen to’re tall or identical to a bit additional house, you’ll be completely happy to listen to they’re including premium seats with additional legroom. This transfer in the direction of a extra differentiated product providing may enchantment to vacationers prepared to pay a bit extra for added consolation.

Southwest Credit score Playing cards: What’s Coming?

Southwest’s bank card lineup is sure to be affected by the brand new seating and perk choices. With new seating choices on the horizon, anticipate to see some tweaks to card advantages. Possibly precedence entry to these new premium seats or level redemptions for seat assignments? We’ll have to attend and see, however it’s price maintaining a tally of if you happen to’re a cardholder or contemplating making use of.

Be taught extra: Finest airline bank cards.

I’m particularly excited on the concept of utilizing Southwest Speedy Rewards factors for European journeys. The brand new route choices are making Southwest bank cards extra interesting to me together with the Chase Final Rewards-earning playing cards as Southwest is a Chase switch companion. You additionally must marvel how Southwest’s well-known Companion Passes may work within the new partnership. 

At present, Southwest affords a number of bank card choices, every with its personal perks and annual charges. The Southwest Speedy Rewards® Precedence Credit score Card, for instance, comes with advantages like a $75 Southwest® annual journey credit score annually and seven,500 anniversary factors annually. Because the airline evolves, we will anticipate these card choices to adapt as effectively.

Be taught extra: Finest journey bank cards.

What’s Not Altering

Earlier than you begin pondering Southwest’s turning into simply one other massive airline, let’s discuss what’s staying the identical. You’ll nonetheless get two free checked luggage, they usually’re protecting their no change payment coverage the place you may simply rebook if costs go down. In an period the place most airways nickel and dime you for every thing, these insurance policies proceed to set Southwest aside.

Speedy Rewards factors will nonetheless don’t have any blackout dates, received’t expire, and reward seats will stay uncapped. This dedication to sustaining the core strengths of their loyalty program is reassuring. It means that whereas Southwest is evolving, they’re not forgetting what made them a favourite amongst budget-conscious vacationers within the first place.

Trying forward: Southwest’s broader technique

These modifications are half of a bigger transformation plan Southwest calls “Southwest. Even Better.” Past the Icelandair partnership and seating modifications, they’ve obtained just a few different methods up their sleeve:

• “Getaways by Southwest”: A brand new trip bundle product launching in 2025, providing customizable bundles with Southwest’s signature versatile insurance policies.
• 24-hour operations: The airline will introduce redeye flights in key markets beginning in February 2025. This may very well be a game-changer for vacationers trying to maximize their time and decrease resort nights.
• Operational efficiencies: Southwest is engaged on quicker plane turnaround occasions and different measures to optimize its operations. Whereas this may not sound thrilling, it may imply fewer delays and a smoother journey expertise, which is particularly needed after the notorious meltdown of December 2022.

The takeaway

These modifications may open up some attention-grabbing potentialities for journey. Utilizing Speedy Rewards factors for a European journey? Not having to emphasize about boarding place to take a seat with your loved ones? Sounds fairly good to me. 

However it’s not nearly comfort—these strikes place Southwest to compete extra successfully within the world aviation market. In fact, we’ll must see the way it all shakes out. Southwest’s making an attempt to develop up with out forgetting what made them fashionable within the first place. It’s a tough stability, but when they pull it off, it may very well be a win for vacationers. 

The important thing shall be within the execution: Can they implement these modifications whereas sustaining the pleasant, environment friendly service they’re identified for? Both approach, I feel it’s going to be fairly the journey.

Welcome to What’s in Dia’s pockets. On this month-to-month column I’ll share what’s, sure, in my pockets but in addition what’s on my thoughts. After over a decade overlaying bank cards, touring a median of 100 nights a yr, and incomes and spending over one million factors annually to do it, I’ve realized just a few issues. In case you have questions or concepts for future matters please attain out to me at creditcards@fortune.com. Dia Adams, Senior Editor

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