Southwest Airlines has always been a disruptor in its industry, taking steps designed to catch the attention of its rivals. In many ways, it functions as a less flashy version of T-Mobile, a company that systematically forced AT&T and Verizon to ditch their shadier practices.
The difference, of course, is that almost all Americans can choose between AT&T, Verizon, and T-Mobile and still get decent service. However, when it comes to airlines, the choice is not the same. On some routes you may have multiple options, but in many cases, people have to fly with the airline that goes to their destination when they want to get there.
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Therefore, Southwest Airlines (LUV) Offering free bags with all tickets has not forced its rivals to do the same. However, moves like that have helped the airline build a loyal fan base who choose to fly with it when possible.
Southwest also has a very clear loyalty program where passengers earn significant benefits when they achieve A-list status, including an earlier boarding position. Those benefits increase when a loyal customer reaches the A Preferred list, where they receive free Internet and priority check-in.
At the top of the company's loyalty program is its Companion Pass, a benefit that allows a qualified passenger to designate someone who can fly with them for free (taxes and certain fees must be paid). Typically, it takes 100 qualifying one-way flights or 135,000 qualifying points in a calendar year to earn that status.
The airline, however, has a way for passengers to get a Companion Pass without reaching those flight numbers and it just brought back that offer.
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Here's a quick way to get a Southwest Companion Pass
Getting a Companion Pass the traditional way basically requires a round trip flight almost every week for a year. That will certainly build loyalty for anyone who thinks they have a chance of meeting that threshold (or earning the necessary points), but it's a high bar even for people who fly a lot.
However, occasionally the airline offers promotions where people can obtain a Companion Pass in different ways. Sometimes that means flying a certain amount in a short period of time, while other times you've offered that perk as a promotion with your credit card.
That promotion bounced back for a short period of time.
Southwest, which works with Chase for its credit cards, is offering a Companion Pass valid through February 2025 for anyone who applies for one of its credit cards, gets approved and spends $4,000 on purchases in the first three months after it's signed up. get the account. Opened.
The offer will be valid until March 11. Only new cardholders are eligible and not everyone will be approved for the credit card.
Southwest seems to have won back its customers
Southwest has traditionally had a reputation for being a passenger-friendly airline. This is partly due to their general lack of additional fees and partly due to their loyalty program. However, the company tested that loyalty with the collapse of the 2022 holiday season.
During that Christmas week, the company canceled thousands of flights and stranded tens of thousands of passengers when bad weather and flight changes overwhelmed its system. It was a dark period that exposed the airline's technological failings, leading it to invest hundreds of millions of dollars in technology, de-icing equipment and personnel.
The company has put those days behind it and regained the loyalty of its passengers, according to comments made by Southwest Chief Commercial Officer Ryan Green during his fourth quarter results call.
“I am pleased to report that we saw no impact on bookings from last year's operational disruption during this past holiday season, which speaks to the operational improvements we have made over the past year, as well as the enduring loyalty of our customers.” , said. saying.
The good news for the airline did not end there.
“In addition, the fourth quarter was another quarter with multiple records set, including record operating income and passenger revenue in the fourth quarter, as well as an all-time quarterly record for passengers carried. Fares also performed well in the fourth quarter with our “Average passenger fare increased approximately 2.5% year over year. And overall, our fourth quarter operating income increased more than $1 billion relative to the fourth quarter of 2019,” he added.
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