Southwest Airlines has initiated the first overhaul of its frequent-flier program for 23 years. The airline has added rewards with no black-out dates and redemptions for international flights on other carriers.
Chief executive officer Gary Kelly said the revamp of its Rapid Rewards loyalty plan should add “several hundred million” dollars a year in revenue. Which is just as well as he has spent almost $100 million on the project in a bid to win new customers and deepen ties to existing business travellers.
“If we get our fair share of frequent fliers, the opportunity is huge,” Kelly said. “We’re very confident this is a good investment.”
The changes are detailed on a dedicated website and will come into force on March 1.
Under the new program, members receive a credit for each flight and earn a free flight after accumulating 16 credits. There is no expiration date as long as the account remains active in a 24-month period, and there are no black-out dates on which redemptions are banned and no limit on awards redeemed per flight. Points also can be redeemed through third-party provider for international flights.