Southwest Airlines cancels expiration dates for its flight credits

Southwest Airlines announced on Thursday, July 28, that flight credits of its customers would no longer have an expiration date. The world's largest low-cost carrier headquartered in Dallas, Texas, has scrapped the expiry of credits that it gives out to customers who need to cancel their tickets.

As per USA Today, passengers can now enjoy the extra flexibility when their travel plans suddenly have to be postponed due to unavoidable circumstances. Southwest Airlines said that regardless of the type of ticket they purchased, passengers’ flight credits will be available for use at any time, even if these were credited years or decades ago.

It was noted that Southwest has long been promoting itself as a “customer-first” airline and its long-established policies of no cancellation or bag fees is what makes it different from most of its domestic rivals that usually charge extra for luggage, flight changes, and other services.

Now, at the height of the COVID-19 pandemic, many customers were forced to cancel their travel plans, and this was the time when hundreds of travellers received flight credits. Instead of issuing refunds, many air carriers handed out vouchers that can be used for future travel dates, but in Southwest, the flight credits have long been part of its business model.

While there are also other airlines that issue credits, Southwest is the only major airline in the United States that offers it without any expiration date. Previously, these credits should be used up within a year of the original date of purchase for non-refundable flight tickets. The airline said that starting July 28, it will be extending all existing flight credits.

"The more than 62,000 People at Southwest share a renewed pride in our unmatched access to the flexibility that once again reshapes the landscape of Hospitality and value in the industry," Southwest Airline's chief executive officer, Bob Jordan, said in a press release.

He added, "Flight credits don't expire* aligns with the boldness of a philosophy to give our Customers definitive simplicity and ease in travel, just like Bags fly free, just like No change fees, just like Points don't expire1—they're a first-in-our-industry combination of differentiators that only Southwest offers."