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Southwest Airlines LUV-0.85% is bringing back a promotion that lets customers bring a buddy for free. The company’s Companion Pass will allow members of its rewards program to access the feature.
“We love offering this Companion Pass promotion because it allows our Members to experience one of the many benefits of our award-winning Rapid Rewards program,” said Jennifer Bridie, Southwest vice president for marketing, in a statement announcing the deal.
There are obviously a few catches:
- You have to be a member of Rapid Rewards, Southwest’s loyalty program
- You have to book a flight using your Rapid Rewards number — and take that flight — by November 20
- Your Companion Pass guest can only travel with you between Jan. 6 and March 6, 2025
- “Free” does not include taxes and fees associated with a ticket
It’s not the first time Southwest has run the program. In fact, the last time was in March, and the companions flying free under that round have until October 2 to do so.
Loyalty programs are an important revenue driver for airlines. For one, those customers tend to book more frequently because they want access to the perks that come with accumulating lots of points with a particular carrier. (Normally, Rapid Rewards members can access the Companion Pass by flying 100 one-way legs in the space of a year.) Southwest brought in $3.7 billion from fares booked by loyalty members last year according to its most recent annual report, good for more than 15% of its overall passenger revenue.
Plus, airlines make money on loyalty programs by selling their rewards points to other companies and through deals struck with the credit card companies who offer co-branded cards for members. The company brought in “other” revenues — primarily from its rewards side hustle — of $2.3 billion last year, a record.
“The Rapid Rewards program is doing extremely well,” Southwest CEO Bob Jordan said on a company earnings call in March, adding that “it’s a very attractive program to our consumers and our customers, and we see significant growth in the program.”
When Southwest announced that it would be revamping its signature open-seating-open-boarding policies, the executive tasked to oversee the transformation came over from working with frequent-flyer operations.
“I’ve asked our Chief Commercial Officer, Ryan Green, to take on leadership of this initiative on a full-time basis,” CEO Jordan said on an earnings call in July. “As EVP of Commercial Transformation, Ryan will lead this effort along with other commercial initiatives already underway. Ryan has led the work to this point and is steeped in knowledge regarding customer trends and previously and successfully led efforts to transform our Rapid Rewards loyalty program and the digital customer experience.”