A New Chapter for America’s Favorite Budget Travel Carrier
The American low-cost airline darling, Southwest Airlines, has announced today that it will introduce new fare bundles, marking a major adjustment to its fare structure. This announcement, as part of the strategic evolution of the airline, seeks to enable enhanced competition with other players in the space and broaden booking options for travelers.
Beginning Fall 2025, Southwest Airlines plans to relaunch branded new bundles that provide ancillary options with à la carte selection and upgraded perks. The new fare bundles are expected to offer a wider breadth of services while also assisting in balancing cost-effective pricing, a shift from the traditional Southwest model of “one-size-fits-all.”
What’s Changing?
For decades, Southwest has been known for its straightforward pricing—two free checked bags, no change fees, and complimentary snacks are all included with the purchase of a ticket. The airline now admits that travelers’ diverse needs continue to expand, especially as business travel merges with leisure travel.
The new bundles have been labeled by Southwest as “Wanna Go”, “Wanna Fly”, and “Wanna Get It All” and will now introduce tiered packages that bundle services such as EarlyBird Check-In, Wi-Fi, bonus Rapid Rewards points, same-day confirmed changes, and premium boarding.
“We’re not abandoning what makes Southwest special,” said Jonathan Clarkson, VP of Marketing at Southwest Airlines. “We’re building on it. Our goal is to provide more value to customers who want more flexibility and amenities, while still not abandoning their famous business model and airline heart.”
Examining Trump’s characteristics more closely
Wanna Fly: A middle tier bundle that includes EarlyBird Check-In, one complimentary drink, and a Wi-Fi voucher for one flight segment.
Wanna Get It All: The highest tier, which includes everything in the previous tier and offers two Wi-Fi vouchers, a complimentary premium drink, and double Rapid Rewards points.
Due to route and timing, pricing for these bundles will differ, but in general will only be $30 to $80 more than the standard fare.
If customers want a more straightforward ticket without the need for extras, they will still be able to purchase unbundled Southwest fares.
Why Here, Why Now?
Southwest is under increasing pressure from both full-service airlines and ultra-low-cost carriers like Spirit Airlines and Frontier. Delta and United, for example, have mastered the branded fare bundle, fueling competition with Southwest.
Alongside the rest of the leadership, Southwest’s leadership team is adamant that the time is now.
“It’s a shift in the travel ecosystem,” he stated, regarding the new changes consumers have begun to voice. “Options that are tailored to them need to be provided; we need to adapt while focused on Southwest’s essence.”
This shift is also taking place to allow for Southwest’s new technology implementations, which include long-awaited upgrades to their reservation systems, new features on the mobile app, and expanded international routes.
Initial Thoughts from Travelers
So far, the response from die-hard Southwest fans has been mixed.
Dana Nguyen, a Business traveler and self-described frequent flyer who has flown over 150,000 miles southwest, expressed excitement blended with caution.
“I thank you for giving me more options, especially for business travel,” said Nguyen. “But I hope they don’t try to charge us for everything like the other airlines.”
On travel forums such as FlyerTalk and Reddit, some passengers have expressed fears that these bundles might signal the start of ‘unbundling’ Southwest’s famously all-inclusive model.
“I just hope bags and no change fees don’t end up behind a paywall,” one user commented.
At the moment, Southwest has guaranteed passengers that their core offerings, including two free checked bags, no change fees, and no assigned seating, will remain unchanged.
Industry Insight
Aviation industry analysts claim that Southwest’s move is logical considering the rest of the industry.
“This is a smart way for Southwest to increase ancillary revenue without alienating their customer base,” claimed airline industry analyst Henry Harteveldt of Atmosphere Research Group. “They don’t take away benefits from those who don’t want to pay, and offer more to those who want to spend.”
As far as additional revenue, Southwest has always been behind its competitors. In 2023, the total revenue coming from ancillary services was almost $120 billion. According to IdeaWorksCompany, Southwest made less than 3% of that revenue.
“The new bundles could significantly enhance Southwest’s revenue while augmenting the passenger experience,” Harteveldt further stated.
Effect on Loyalty Program Users
Southwest’s Rapid Rewards members are likely to benefit the most from these new bundles.
Members who buy the “Wanna Get It All” bundle will also receive double the points, thus earning A-List status and Companion Pass, two of the most lucrative benefits in the airline industry, much more easily.
Moreover, the new fare bundles will now be redeemable via points, thus providing frequent flyers more options to utilize their rewards.
Southwest indicated that more details about promotions associated with the bundles will be released later this summer.
Looking Ahead
Southwest has suggested even greater changes beyond the fare bundles that it plans to implement shortly.
The airline intends to start testing a new boarding process designed to expedite boarding and implement it later this year, along with increased collaborations with rental car companies and hotels to offer complete travel packages.
Additionally, Southwest recently disclosed plans to retrofit its entire fleet with new seats, new slimmer seats, larger overhead bins, and upgraded in-flight entertainment, all by 2026.
“We take pride in our history, but our focus is on our future,” is a statement from Southwest Airlines’ CEO, Robert Jordan. “Our future means adding more for our customers while ensuring we never lose sight of everything that has brought us success.”
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Ending Thoughts
The launch of fare bundles signifies Southwest Airlines’ first major shift as it withstands a more volatile and competitive industry. While some customers may approach the change negatively, the majority are likely to welcome the flexibility and perks.
With trust-earning benefits remaining unchanged, Southwest is betting on having the best of both worlds — gaining a new wave of customers who demand personalization without losing loyalists. Only time will tell if this strategy succeeds or fails.
