Dive Brief:

• Southwest Airlines’ loyalty program, Rapid Rewards, grew 35% year over year, hitting a record nearly 100 million members in the second quarter, President and CEO Bob Jordan said on Q2 2026 earnings call Thursday.
• Tier-status earners also reached a record high in the quarter, after growing 62% year over year in Q1, according to Jordan. Meanwhile, accounts for Southwest’s Chase co-branded credit card grew 28% year over year.
• “Across the board, every measure of engagement, every engagement that would point to whether the products are being accepted and were wanted by our customers are up, and they're off-the-charts up,” Jordan said on the call. “So it gives you a good indicator of the acceptance, but it also gives you a good indicator of future performance of those customers as they mature and they spend more with Southwest Airlines.”

Dive Insight:

More than a year after drastic changes to its offerings, Southwest says its strong engagement proves customers are welcoming its enhanced product offerings, and revenue is following. 

Southwest reported second quarter operating revenues of $8.4 billion, up 16.4% year over year, and revenue per available seat mile increased 16.2% year over year, according to an earnings report. Rising fuel costs weighed on profits, with fuel expenses up nearly $900 million. Even so, net income increased 9.4% year over year to $233 million. 

“We have emerged as a stronger, more resilient, and better positioned Southwest while sustaining a unique set of core strengths that remain firmly intact,” Jordan said.

Those strengths include not only its network and operational efficiency, but Southwest’s brand loyalty and the service and hospitality delivered by Southwest’s people, Jordan said. “That creates a differentiated position in the marketplace that no other airline can replicate.”

Jordan pointed to research from JD Power, which named Southwest No.1 in customer satisfaction among economy passengers on North America airlines for the fifth consecutive year.

Regarding Rapid Rewards enrollment, Katy Nastro, a travel expert with Going, says one big thing comes to mind. “Bags fly free... with the right credit card.” 

The primary Rapid Rewards credit card member can access their first standard checked bag free. Last year, Southwest ended its marquee “bags fly free” policy, which allowed customers to fly with two free checked bags.

“Some folks who didn’t sign up for loyalty may now see the credit card as a beacon of savings, which automatically grants you a Rapid Rewards account upon approval,” Nastro said.

Southwest launched its first Starlink-equipped aircraft last month, with plans to outfit more than 300 aircraft with it by the end of year. For Alaska Air, which has equipped about one-third of its aircraft with Starlink, customer satisfaction on flights with Starlink is 20% higher than on non-equipped flights.

Southwest is also planning on expanding its co-brand offerings and even lounges. 

The airline’s trip net promoter score improved throughout the quarter, and Southwest had the lowest customer complaint rate among major U.S. airlines, according to Chief Operating Officer Andrew Watterson.