Use up your Southwest points before bankruptcy

[mikehn]

I have nearly six figures in points I need to burn up before Southwest files for bankruptcy or before they cut routes to the bone. But I only have so much time I can take off from work. Anyone else in this predicament?

 

[SL6827]

So they are filing? What about people who have SW gift cards? How would such play out you think?

 

[OKW Lover]

Don't assume that your points will be worthless if they do file. In any bankruptcy case (not specifically SW) they typically file for chapter 11 which allows them to re-negotiate contracts and financing. The objective is to keep the company running. Of course that requires customers. Alienating customers by making their frequent flyer benefits useless won't get people to do business with them.

 

[JimMIA]

I could well have missed it, but I haven't seen any info on SW considering bankruptcy.

 

[Shelly F - Ohio]

I could well have missed it, but I haven't seen any info on SW considering bankruptcy.

Me either.
Fake news day

 

[tcufrog]

I live where SW is based out of and I haven't seen anything in the news about them possibly filing for bankruptcy.

 

[a1tinkfans]

I just canceled a jet blue trip... no cash back but credit for two years from today, not when I booked, which was feb. I think it’s a win for me. More so that it can transfer to anyone to use.
My sw points for the entire family are high... I really like their entire “model” despite knocking out our non stops and cutting back on number of flights. What I don’t like... too many front of the line people.. just too too many. It’s nuts!
I hope SW is able to hang in there. Weren’t they GivingvAll rewards members 15K milesas result of covid? I need to follow up on that too....

 

[spiders]

Miles usually remain unchanged through a Chapter 11 proceeding. However, as others have stated, Southwest is not even on the radar for bankruptcy.

Southwest has, however, posted it's first quarterly loss in over 10 years. It's prior profitable streak lasted 17 years.

Southwest may be forced to, for the first time in it's 50 year history, involuntarily furlough employees.

There are a lot of airlines that are facing potential bankruptcy if not straight out insolvency but Southwest isn't one of them.

 

[JimMIA]

I personally think the entire vacation industry is going to get hit hard. When you have a family where one key wage earner loses their job, BIG changes have to be made. And they have to be made in a hurry.

Cruise lines obviously will be hurt (Norwegian announced today they didn't know if they could survive as a "going concern.), resorts, travel agents, theme parks, tour companies, AirBnB hosts, timeshares, etc. And yes, airlines -- especially those who cater to vacationers.

 

[MillauFr]

More fake news. Southwest, Delta, and Alaska are the most solid airlines in the industry. American on the other hand was struggling even before the virus and may not last long.

 

[DebbieB]

I just canceled a jet blue trip... no cash back but credit for two years from today, not when I booked, which was feb. I think it’s a win for me. More so that it can transfer to anyone to use.
My sw points for the entire family are high... I really like their entire “model” despite knocking out our non stops and cutting back on number of flights. What I don’t like... too many front of the line people.. just too too many. It’s nuts!
I hope SW is able to hang in there. Weren’t they GivingvAll rewards members 15K milesas result of covid? I need to follow up on that too....

They are giving 15000 points towards A List status, not to spend.

 

[mikehn]

I have not heard any bankruptcy news regarding SW specifically. But everyone knows all the airlines are on the brink. I didnt wanna be holding that many points when they do. Regardless, they are all cutting their routes. It would suck if all they offered were flights to Dallas come October.

 

[DVC-Don]

I have nearly six figures in points I need to burn up before Southwest files for bankruptcy or before they cut routes to the bone. But I only have so much time I can take off from work. Anyone else in this predicament?

Fake news.

 

[nkereina]

Don't assume that your points will be worthless if they do file. In any bankruptcy case (not specifically SW) they typically file for chapter 11 which allows them to re-negotiate contracts and financing. The objective is to keep the company running. Of course that requires customers. Alienating customers by making their frequent flyer benefits useless won't get people to do business with them.

This. A Chapter 11 filing does not always equate to closures or loss of perquisites. In many cases, a chapter 11 filing is merely a business decision for the books and has little to no impact on customers. Often, employees don't even notice a difference either.

 

[daisy2013]

Southwest is one of the few airlines that can weather a storm.

https://www.forbes.com/sites/greats...ide-over-the-coronavirus-crisis/#332e9ad8f0e2

 

[Nebraska_Disney]

The earlier post which stated that the entire travel and vacation industries will be changing is spot on. We will see less routes being flown, we will see less flights in general and that will raise the price for those who are still flying. The entire industry will be flipped around until "normal" is reached, whatever that is and whenever that is.

 

[SinCityMMAFan]

SW is one of the last airlines that will file for bankruptcy.

 

[StitchesGr8Fan]

I have not heard any bankruptcy news regarding SW specifically. But everyone knows all the airlines are on the brink. I didnt wanna be holding that many points when they do. Regardless, they are all cutting their routes. It would suck if all they offered were flights to Dallas come October.

No, not all airlines are on the brink.

 

[bearzabout]

My husband had a credit with Pan am. Needless to say, he never got to use it.

I’ve heard that some airlines locked in fuel purchases at about $40 per barrel. Bankruptcy reorganization might get rid of obligations like this and make it more likely they will survive long term.

 

[tinkerhon]

You know they are in really bad shape ----

https://www.forbes.com/sites/geoffw...en-buffett-dumps-airline-stocks/#3f6835cc7aec