Southwest Airlines announces new partnership with Icelandair

But Southwest didn’t stop there. They are planning to add at least one more international partner next year. It’s a smart move that will help them compete with major carriers without making large investments in rolling out their own long-haul routes. This means you’ll have more options for using your Instant Rewards points and access to more destinations.

Southwest isn’t revealing details, but they are hinting at some changes to the Quick rewardsalso. Think international flight redemptions and better perks for Priority A-List and A-List members. I’m curious to see how this plays out. Will we see better redemption rates for international flights? Are there additional ways to earn qualifying points? The possibilities are intriguing.

Why Icelandair makes perfect sense for Southwest

Icelandair, very similar Copa Airlinesoperates a hub and spoke network between the United States and Europe. With 34 destinations in Europe, they’ve pretty much covered the continent with planes similar to those you’d expect when flying in the US, with business class resembling a first class seat. Most domestic than reclining chairs. To me, that’s not worth it.

I’m not one to worry about a flat seat for every flight across the pond. Flight time from BWI to Reykjavik (KEF) is about six hours, roughly the same as a connecting flight or the recent flight I took from DC to Cancun. That’s not the amount of time it would kill me to get a regular seat, especially if the price is right.

And the price is what excites me the most. Icelandair’s BWI-KEF flights typically cost less than $500 round-trip in economy class, and if Southwest keeps its redemption rate around 1.4 cents, that means these flights could cost around 35,000 Rapid Rewards round trip in economy class. Of course we don’t know the details yet, but I can’t wait to find out.

The end of the struggle for the Southwest?

Here’s a shocker: Southwest introduces assigned seating. I know, it’s hard to imagine Southwest without its insane desperation to gain ground. But according to a Southwest survey, 80% of their customers want this change. Count me firmly in this camp. I wouldn’t miss checking in 23 hours and 59 minutes before my flight for the reward of the dreaded “C” boarding group.

And if you’re tall or just want a little more space, you’ll be happy to know they’re adding premium seats with more legroom. The move toward a more differentiated product offering could attract travelers willing to pay a little more for added comfort.

Southwest Credit Card: What’s next?

Southwest’s credit card lineup will certainly be affected by the new seating options and perks. With new seating options coming soon, some adjustments to pass benefits are expected. Is it possible to prioritize access to those new premium seats or redeem points for seat assignments? We’ll have to wait and see, but it’s worth keeping an eye out if you’re a cardholder or considering signing up.

Learn more: Best airline credit cards.

I’m especially excited about the idea of ​​using Southwest Rapid Rewards points for European trips. The new route options are making the Southwest credit card more attractive to me along with Chasing the ultimate reward– earn the card because Southwest is a transfer partner of Chase. You also have to wonder how Southwest got famous Companion card can work in new partnerships.

Currently, Southwest offers several credit card options, each with its own perks and annual fees. For example, the Southwest Rapid Rewards® Preferred Credit Card comes with benefits like a $75 Southwest® annual travel credit per year and 7,500 anniversary points per year. As airlines evolve, we can expect these card offerings to adapt as well.

Southwest Rapid Rewards® Preferred Credit Card

Referral rewards

Earn 85,000 bonus points after spending $3,000 on purchases in the first 3 months of account opening.

Annual fee	$149
Regular APR	Variable 21.49%–28.49%

receive from us

If you’re a Southwest road warrior, the free daily wifi alone might make this card worth it. Add anniversary points and strong rewards rates on Southwest purchases and you’ll recoup more than your annual fee.

Award

Reward rate

• 3x 3X points on Southwest® purchases
• 2x 2X points for Rapid Rewards® car rental and hotel partners, local transportation and commuting, including car sharing, internet, cable and phone services; select streaming
• 1x 1X points on all other purchases

Card details

• Additional perks: 25% off flights, Earn 1,500 TQP for every $5,000 spent per year, 10,000 points discount when earning the Southwest Companion Pass






• Foreign transaction fees: None

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Learn more: Best travel credit cards.

What doesn’t change?

Before you start thinking Southwest is becoming just another major airline, let’s talk about what stays the same. You’ll still get two checked bags for free, and they still keep their no change fee policy where you can easily rebook if the price drops. In an age where most airlines charge you for everything, these policies continue to set Southwest apart.

Instant Rewards Points will still have no expiration date, will not expire, and the number of bonus slots will remain uncapped. Their commitment to maintaining the core strengths of their loyalty program is reassuring. It suggests that while Southwest is growing, they haven’t lost sight of what made them a favorite of budget travelers in the first place.

Looking Ahead: Southwest’s Broader Strategy

These changes are part of a larger transformation plan that Southwest calls “Southwest. Even better.” In addition to the Icelandair partnership and seat changes, they have a few other tricks up their sleeves:

• “The getaway of the Southwest”: A new vacation package product launches in 2025, offering customizable packages with Southwest’s signature flexible policies.
• 24-hour operation: The airline will introduce red-eye flights in key markets starting February 2025. This could be a game-changer for travelers looking to maximize time and minimize passengers. hotel night.
• Operational efficiency: Southwest is studying faster aircraft turnaround times and other measures to optimize its operations. While this may not sound exciting, it could mean fewer delays and a smoother travel experience, which is especially needed after the infamous December 2022 meltdown.

Takeout

These changes could open up some exciting possibilities for tourism. Using Rapid Rewards points for a trip to Europe? Don’t have to worry about where to board the plane to sit with your family? Sounds pretty good to me.

But it’s not just about convenience – these moves help Southwest compete more effectively in the global airline market. Of course, we’ll have to see how it all plays out. Southwest is trying to grow without forgetting what made them famous in the first place. It’s a difficult balance, but if they succeed, it could be a win for tourists.

The key will be in execution: Can they implement these changes while maintaining the friendly, efficient service they are known for? Either way, I think it’s going to be quite an interesting trip.

Welcome to What’s in Dia’s wallet? In this monthly column, I’ll share what’s, well, in my wallet as well as what’s on my mind. After more than a decade of using credit cards, traveling an average of 100 nights a year, and earning and spending more than a million points a year doing it, I’ve learned a few things. If you have questions or ideas for future topics, please contact me at [email protected]. Dia Adams, Senior Editor

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