Southwest Airlines Expects New Hawaii Routes Will ‘Ignite’ Credit Card Sign-Ups
Photo Credit: Southwest will use its Boeing 737 Max aircraft to Hawaii over the long-term. The airline expects new Hawaii routes to help it increase credit card sign-ups. Southwest Airlines
Skift Take
If you have an airline-branded credit card, you may think you're getting a free ticket. It is free — for you. But often someone is paying for it.
When Southwest Airlines evaluates routes, it researches at all the data you expect, including how many travelers fly on existing flights, and the average fares they pay. But for leisure opportunities, it often examines something else — potential credit card applications.
For U.S carriers, credit card partnerships are big business, with banks locking up airlines in multi-year deals worth billions. Companies like Chase and American Express buy points and miles from airlines and use them to reward their big-spenders, allowing travelers with the right cards to fly "free." It complements the traditional free ticket approach in which Southwest rewards its flying customers with points. But credit card deals are so lucrative some airlines are ambivalent about whether a customer pays with points or cash.
"The credit card is core to the airline business," Andrew Watterson, Southwest's chief revenue officer, said in an interview.
Southwest has long known its highest-value customers
