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Southwest Airlines has announced a major overhaul of its credit card offerings, which includes the introduction of new perks and a significant increase in annual fees. The changes, effective immediately, are part of the airline's broader strategy to update its business model.
The Dallas-based carrier is enhancing benefits on its Chase cobranded cards by adding ways to earn bonus points on restaurant, grocery, and gas purchases. "We believe that our existing cardmembers as well as the new cardmembers will see the real and measurable value that the benefits convey," said Corbitt Burns, Southwest managing director of cobrand and payments.
Despite these enhancements, cardholders will face higher costs. Annual fees for each Southwest card will rise significantly, with average increases around 50%. Chris Cracchiolo, president of cobranded cards at JP Morgan Chase, explained that this is the first fee increase in some cases in a decade. "We believe strongly that we're pricing for value," he stated.
