DALLAS — Southwest Airlines is overhauling its frequent-flier program to include rewards with no blackout dates and redemptions for international flights on other carriers.
The first major revamp of the Rapid Rewards loyalty plan since it began in 1987 should add “several hundred million” dollars a year in revenue, chief executive Gary Kelly said Wednesday at a briefing at Southwest’s Dallas headquarters.
Southwest, the largest low-fare airline, spent almost $100 million on the project and aims to win new customers and deepen ties to existing business travelers, who generally pay higher prices. The carrier unveiled a related website for passengers Thursday to explain the changes, which take effect March 1.
“The new program is significantly more attractive than the old one and will gain for Southwest customers and loyalty-program members who were previously vested in the programs of competing airlines,” Tim Winship, a contributing editor for who provides advice about frequent-flier plans, said by e-mail.
Rapid Rewards members now receive a credit for each flight and earn a free flight after accumulating 16 credits. The system doesn’t reward longer flights with more credits and doesn’t let passengers amass credits beyond 16.
The new program gives points, based on the ticket price and the fare category, that can be accumulated for larger awards. The points-per-dollar rate increases with the type of fare.
There is no expiration date, as long as the account remains active in a 24-month period.
