New Southwest Airlines Policy Hurts Budget Customers Even More

Southwest Airlines used to be an airline popular with customers on a budget before ending its free bag policy. Now, the airline has made yet another major change that hurts budget-conscious customers even more.

Last month, Southwest Airlines sparked widespread outrage when the airline announced that it would be ending its longstanding policy of two free checked bags per customer, instead moving to charge most customers for checked bags. Now, the airline has announced the end of another customer-friendly policy.

In addition to the free bag policy, Southwest Airlines also had a policy stating that its travel credits never expired. If a customer had to cancel a flight, they could simply use the credits on another Southwest flight at any point in the future with no time constraints or limitations. However, that policy is now ending.

Last week, Southwest Airlines announced that it would be ending this policy. Effective May 28, travel credits will expire 12 months from the date of original ticket purchase for most tickets. However, for basic economy fares, the travel credits will expire just 6 months from the date of the original ticket purchase.

As Gary Leff of View From the Wing points out, this change creates a major problem for the budget basic economy customers, who typically purchase tickets well in advance of their flight when prices are cheaper.

"Someone buying a basic economy ticket far in advance, and cancelling travel six months later, will literally receive no credit at all. The validity of the credit is based on when you buy the ticket, not when you cancel travel and get a credit," Leff wrote this week.

"They went from credits never expire, to some customers are simply out of luck and get nothing. Because Southwest Airlines stopped caring – not just stopped caring about their customers, but stopped caring about differentiating themselves, offering a unique value proposition, in order to earn a product."

The airline that used to be quite friendly to lower-income customers on a budget, with its free bags and travel credits that never expire, has now eliminated those changes.