Southwest’s “No Fees” Policy for Ticket Changes and Cancellations

In October 2015, a class-action lawsuit was filed against Southwest Airlines for allegedly deceptively advertising that the company has a “no fees” policy for ticket changes and cancellations. Specifically, according to the complaint, Southwest’s “no fees” policy provides that, when customers cancel non-refundable tickets, the full amount paid may be used without restriction as credits to purchase future travel on Southwest for 1 year from the original date of purchase. However, plaintiffs allege that there is a “hidden exception” to this policy, which is that Southwest forfeits the money paid for a ticket in less than 1 year from the date of purchase in situations where customers purchase future travel by combining cash with credit from a previously cancelled ticket. In other words, if the future travel is cancelled, Southwest forfeits both credits 1 year from the date of the earliest purchase. (Shrem et al v. Southwest Airlines Co., Case No. 15-cv-4567, N. D. CA.)

For more information about other class-action lawsuits filed against Southwest Airlines and TINA.org’s coverage of the company, click here.