Southwest Airlines has implemented new "variable" award pricing for its Rapid Rewards loyalty program. The change, which began quietly last week, allows redemption rates to fluctuate significantly between flights. This development is part of a broader strategy overhaul announced on March 11, which also included the end of the "bags fly free" policy.

A spokesperson confirmed the rollout to TPG on Wednesday. The Points Guy (TPG) noted that previously, Southwest's redemptions were dynamic but followed a relatively fixed rate based on cash prices. TPG's March 2025 valuations place the value of a Southwest Rapid Rewards point at about 1.35 cents.

Examples of the new pricing include a flight from Phoenix Sky Harbor International Airport to Honolulu's Daniel K. Inouye International Airport during the week of July 4, where a $597 flight can be redeemed for 54,000 points—equating to 1.1 cents per point. Conversely, a September flight from Phoenix to San Francisco Bay Oakland International Airport offers over 1.7 cents per point when redeeming 7,500 points instead of paying $129.