Southwest Airlines irks customers by killing another popular policy
Southwest Airlines is putting an expiration date on passengers ' flight credits — and travelers are not happy.
Last month, the airline announced a slew of changes it will be making this year, which will go into effect on May 28. One major change is that flight credits are being given an expiration date.
The airline previously had a 'travel credits don't expire' policy.
As noted by Southwest, a 'flight credit is a credit from either a canceled flight or a downgrade in fare that can be used to buy a future flight.'
However, with Southwest's new policy, any flight credits issued when you buy a ticket on or after May 28, will expire in one year from the 'date of ticketing.'
In some cases, credits could expire within less than a year from the date you bought your plane ticket. All passengers' flight credits will have a specified expiration date.
However, if you've earned any flight credits on May 27 or earlier, they will not expire.
On social media, many Southwest customers have expressed their anger about the policy change.
'So not only Southwest will have added checked bag fees, no more low fares, seat selection, but now the travel credits have an expiration date. What incentive is there to still fly with them over other airlines now?' one wrote on X, referencing the company's simultaneous decision to end its free checked bag policy.
'Why would I fly Southwest when they follow the same as other airlines,' another tweeted. 'People go where the perks/ amenities rise above, that also have the best price & comfortable seating when picking. Southwest is not the 1st choice anymore.'
Other travelers declared that they wouldn't be using the airline anymore.
'They were my go-to airline. Placing customers first made them the obvious prime choice. Now it seems customers are last…digging for every penny they can scrape out of them,' one tweeted.
Another agreed: 'No more southwest for me. I will be changing my loyalty credit card too.'
Last month, Southwest also announced that starting May 28, customers can't check their first and second bags for free unless they are part of Southwest's A-List loyalty program. Other select customers, A-List members and Rapid Rewards Credit Card will also receive one free checked bag. Or, you can check your bag for free if you are traveling on a business fare.
'We have tremendous opportunity to meet current and future Customer needs, attract new Customer segments we don't compete for today, and return to the levels of profitability that both we and our Shareholders expect,' Bob Jordan, the President, Chief Executive Officer, & Vice Chairman of the Board of Directors at Southwest Airlines, said in a press release at the time.
However, Southwest confirmed that those who cannot find a place for their carry-on bag on busy flights would not be charged, even if it has to be checked.
'There will be times when we solicit at the gate for a soon-to-depart full flight bags to check, and of course, there would not be a charge,' the company said in a statement to The Independent. 'If someone is on the aircraft and cannot find a place for their bag, of course, there would not be a charge. The policies and protocols will be spelled out (along with the specific charges) as we approach adding this into our operation.'
Southwest was known for offering two free checked bags to all passengers. Each bag could be 62 inches in size and up to 50 pounds, according to the company's policy. If customers had a third bag to check, they would be charged an additional $150. If one of their two checked bags is overweight, they will also be charged an additional $150.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Leader Live
a day ago
- Leader Live
Swiss aerobatic team at Hawarden ahead of Cosford air show
The PC-7 Team, part of the Swiss airforce's aerobatic team, flew into the airport on Thursday afternoon ahead of the RAF Cosford Air Show. (Image: IB Photography) The event takes place at the air base, located near Telford in Shropshire, on Sunday (June 8). It is the Swiss team's only overseas airshow this summer, and aviation enthusiasts were able to catch a glimpse as they landed at Hawarden. The PC-7 Team last performed at Cosford in 2017, and since their formation in 1989 have built a reputation for thrilling audiences across Europe and beyond. The PC-7 Team's homebase is Dubendorf Air Base, but they often operate from Militarflugplatz Emmen or Locarno Airport. All pilots of the PC-7 Team are full-time military pilots and usually fly the F/A-18, but fly the Pilatus PC-7 trainer during displays.
Telegraph
2 days ago
- Telegraph
Don't go to A&E, walking wounded told
The walking wounded will be told to stay away from A&E in the biggest shake-up since the NHS was founded. Wes Streeting said a raft of changes would bring the health service 'out of the dark ages', promising more care closer to home. The urgent and emergency care plan was first promised in January, when ministers came under fire over 'catastrophically' long trolley waits. On Friday, health officials will promise to create a network of around 40 same-day emergency care and urgent treatment centres to deal with all but the most serious crises. The rapid rollout this year will see millions of patients encouraged to visit the centres instead of A&E. Health chiefs said the measures, which would cost £450 million, would 'resuscitate' the system. The units aim to focus on cases that are not life-threatening, with treatment and discharge of patients the same day, to avoid unnecessary hospital admissions. The network is likely to include units sited next to A&Es. They will be able to carry out a raft of tests, dealing with deteriorations in chronic illnesses, and problems such as wound infections. Officials said the plans would mean 800,000 fewer patients each year waiting more than four hours at A&E. At least one in five people who attended A&E did not need urgent or emergency care at all, officials said, while a still larger number could fare better with help elsewhere. Mr Streeting has been inspired by a visit to Australia, where he saw same-day centres in action. He said far too many people were ending up in A&E for want of GP appointments, comparing the average £400 cost of an A&E visit with the £40 cost of a GP slot. New mental health centres and ambulances The plan will also include the rollout of up to 15 mental health crisis assessment centres, to divert such patients away from casualty units to specialist support. In addition, 500 new ambulances will be promised. The plan will also set out new ways of working, so paramedics can give the right help sooner after accessing patient data 'on the spot'. Currently, many ambulance crews are unable to find out the most basic details of patients' medical history, other than what they are told at the call-out. As a result, thousands of patients are automatically taken to hospital when, with the right information, they could be better treated elsewhere. Under a system of 'connected care records', paramedics will be able to access patients' treatment histories on smartphones, laptops and other devices. Mr Streeting said the plan would take the NHS 'out of the dark ages'. He told The Telegraph: 'Many patients who end up in A&E don't need to be there and could get better treatment elsewhere. 'By giving paramedics access to the latest technology on the go, they'll be able to make better decisions and deliver better outcomes for patients.' The Health Secretary said too many patients had ended up stuck on trolleys or facing 'unacceptably long waiting times' for ambulances, for want of care elsewhere. He said: 'Far too many patients are ending up in A&E who don't need or want to be there, because there isn't anywhere else available. Because patients can't get a GP appointment, which costs the NHS £40, they end up in A&E, which costs around £400; worse for patients and more expensive for the taxpayer.' He added that the plan would tackle ambulance handover delays and corridor care. Mr Streeting said: 'No patient should ever be left waiting for hours in hospital corridors or for an ambulance which ought to arrive in minutes. 'We can't fix more than a decade of underinvestment and neglect overnight. But through the measures we're setting out today, we will deliver faster and more convenient care for patients in emergencies,' he said. Sir Jim Mackey, the NHS chief executive, promised a 'radical change in approach'. He said: 'This major plan sets out how we will work together to resuscitate NHS urgent and emergency care, with a focus on getting patients out of corridors, keeping more ambulances on the road, and enabling those ready to leave hospital to do so as soon as possible.' A&E waiting time standards have not been met for more than a decade, while the 18-minute target for category 2 ambulance calls has never been hit outside the pandemic. The document sets out plans for 'making progress towards eliminating corridor care', amid growing concerns that patients are being treated in unsafe environments. It will say the number facing trolley waits of more than 12 hours should be slashed, so that fewer than 10 per cent of patients face such delays. Around 1.7 million attendances at A&E every year currently exceed this time frame. However, the language appears to have been watered down from an earlier draft of NHS plans, which promised 'elimination'. The plan will also aim to reduce ambulance handovers to less than 45 minutes. Officials said league tables would be used to drive improvements. Dr Adrian Boyle, president of the Royal College of Emergency Medicine, said the plan acknowledged the 'shameful situation' facing A&E patients. But he said the aim to cut trolley waits 'lacks ambition'. The senior A&E doctor expressed concern that introducing a maximum 45-minute ambulance handover could end up with more patients piled up in casualty departments. Mr Streeting is already at loggerheads with the British Medical Association, with resident doctors (previously known as junior doctors) threatening to strike, despite being awarded the highest pay rise of all public sector workers. The plan aims to drive up A&E performance to 78 per cent, up from 75 per cent this year, meaning 'over 800,000 people a month will receive more timely care'. It follows a relentless rise in pressures on services, with ambulance usage up by 61 per cent since 2010-11. Rachel Power, chief executive of the Patients Association, said the investment was welcome, but said the plans risked 'missing the point' that so many people end up at A&E units because they could not get a GP appointment. She said: 'The system is broken, and this plan addresses the symptoms of a struggling system without tackling the root causes. It accepts that people are turning to A&E because they can't get GP appointments, but without imminently expanding access to timely support closer to home, there's a real risk of simply shifting the pressure elsewhere in the system.'
Reuters
2 days ago
- Reuters
Breakingviews - RPT BREAKINGVIEWS Toyota is Japan Inc's ultimate value contrarian
HONG KONG, June 5 (Reuters Breakingviews) - Japan's efficiency push has a new and conflicted flag bearer in the form of its largest listed company. Toyota Motor's (7203.T), opens new tab resistance to the official drive to streamline corporate structures in pursuit of higher shareholder returns gave way this week to support for a $33 billion buyout of its supplier Toyota Industries (6201.T), opens new tab. The decision is controversial. The move, on its face, lends the weight of the $250 billion automaker to a broadening wave of overhauls championed by the government, bourse operator Japan Exchange and others. They want conglomerates to unwind cross-shareholdings, estimated by Goldman Sachs to be worth up to 100 trillion yen ($700 billion), and winnow down the 200-odd subsidiaries or so-called 'child' listings, among other measures. The goal is to reduce conflicts of interest and ensure capital is employed productively so that Japan's $4 trillion economy can grow even as its population shrinks. If M&A activity is any measure of Japan's future metabolic activity, there is hope: the value take private deals from 2020-2024 totalled $66 billion, per Dealogic, compared to just $10 billion over the previous half decade. However, much like the shakeup at Seven & i (3382.T), opens new tab, where streamlining only began in earnest after Canada's Alimentation Couche-Tard launched takeover bid for the $40 billion 7-Eleven owner in August, Toyota Group's restructuring is defensive, even if it isn't reacting to a particular suitor. The rejig, announced on Tuesday, reflects a broader desire among large, listed companies to get out ahead of both tightening regulations in Japan intended to protect minority shareholders and growing institutional momentum empowering activist owners. Through a complicated and multi-stage deal, Toyota Motor will unwind its nearly 25% stake in Toyota Industries and replace it with illiquid non-voting preference shares in a new privately held company that will wholly own the supplier. The new structure will keep Akio Toyoda, chair of Toyota Motor and grandson of the group's founder, near the top of the Toyota Industries' ownership structure with a miniscule equity stake. That chafes because shareholders gave him less than 72% of their vote at Toyota Motor's annual meeting in 2024, his lowest level of shareholder support on record. Most crucially, the deal will keep Toyota Industries out of the potential reach of pushy activists now circling Japan's many listed companies. Instead of allowing market forces to unlock the value of Toyota Industries obscured by its 9% stake in Toyota Motor, Toyota Motor will provide the bulk of equity to fund a related real estate company launch a tender offer for Toyota Industries at 16,300 yen a share – an 11% discount to the stock's closing price on Monday. "Toyota is a blue chip — supposed to lead in governance — and here they present a value lacking transparency. The actual transaction is substantively different, with significant financial effects, and they say nothing about that', said Travis Lundy, an analyst who writes for SmartKarma. While Toyota Group has made some progress in recent years in unwinding crossholdings, its web of ownership remains a tangled skein compared to slimmed down peers like Sony (6758.T), opens new tab and Hitachi (6501.T), opens new tab. For instance, 80% of Toyota Fudosan, the real estate company behind the new take-private offer, is owned by five other Toyota Group businesses including Toyota Industries. 'Nothing much has changed in terms of governance at both companies in this horribly underpriced deal, except that public shareholders aren't going to be in Toyota Industries' hair and pushing them around anymore,' said Nicholas Benes, CEO of The Board Director Training Institute of Japan. 'Moreover, the company's minority holders are getting shafted.' Toyota Motor in its deal filings says it believes that the delisting of Toyota Industries is expected to "accelerate the growth of the Toyota Group as a mobility company" and demonstrate "a clearer path toward enhancing the corporate value". In sum, the dealings underscore how Japan's value push is strong enough to force companies to change but sufficiently weak to allow them to act in self-interest rather than shareholders'. In the automaker's case, the pressure to unwind cross shareholdings is simply spurring the creation of new protective structures. Tokyo's problem is that it continues to rely on slow consensus building rather than sharp-toothed rules to bring about change. The fair M&A guidelines introduced in 2023, for example, are just that —guidelines. The Toyota Industries buyout is moving forward just as a set of guidelines from the stock exchange take effect next month calling for better protection of minority investors during take-private transactions. These propose that companies on the receiving end of buyout proposals could consider requiring the approval of majority of minority shareholders but stop short of mandating it. Debate over amendments to Japan's companies act has mostly eschewed these more substantial considerations. If anything, the actions of Japan's largest company highlight the reluctance of large listed groups to fully open the door to outsiders. Toyota Motor was until recently also a key holdout in publishing a plan to enhance shareholder value in line with exchange guidelines, while concerns over its board's independence were sufficient to spur a governance campaign from Glass Lewis in 2023. Of course, critics of the automaker have been quieted more than once by its strong performance. The firm's annualised total shareholder returns of 18% over the past five years safely outstrip Japan's benchmark Topix by 4 percentage points. Impressive but nothing compared to Hitachi whose serious streamlining drive has helped deliver annualized returns of 44 per cent to shareholders over the same period. Ultimately, those expecting Tokyo to fully embrace U.S.-style shareholder capitalism may be disappointed. Toyota Motor is in an exceptional position by virtue of its position at the heart of the country's signature automotive sector, and its sheer size in terms of market capitalization. If Japan allows it to throw its weight around so easily, others will too. Follow Hudson Lockett on Bluesky, opens new tab and X, opens new tab.
