Convenience may be almost as valuable as being budget-friendly when it comes to organizing air travel. Among the top reasons why people make use of Southwest Airlines in large numbers is that it has a relatively consumer-friendly cancelation policy. Southwest is a departure from all the other airlines as it has built a good reputation for having very lax policies in cancelling flights and changing flights. Whether you are a frequent road warrior or the occasional flier, being in the know about Southwest Airlines' cancellation policy will save your pocketbook and less headaches when your plans get axed. No Change Fees: A Uncommon Silver Lining for the Airline Industry 

Approximately the greatest thing about the Southwest cancellation policy is no change fees. Where everyone else is going to add on $75 to $200 or more simply to reconfigure your travel plans, Southwest will allow passengers to change or cancel flights without penalty fees. This is true for all fare classes, all the way down to the lowest "Wanna Get Away" fares the airline sells. 

But what is interesting here is that although the change charges are not being reimbursed, the passengers are still required to pay the difference in fare if the newly booked one is higher. If the newly booked one is lower, then Southwest provides a credit or refund depending on the ticket class bought. 

Refundable vs. Non-Refundable Fares: Know the Difference 

Southwest offers various fare classes, and it is nice to know what each refunding is. The most versatile fare is the "Anytime" and it's refundable in full. Cancellation of an Anytime fare refunds your entire payment back to your original payment method or you can use flight credit to fly another time. 

For corporate travelers, Southwest also offers "Business Select" fares, which also qualify for refunding and include extra benefits like priority boarding. If you need open-ended dates for travel and maximum flexibility, either one of these fare options would be in your best interest. 

Conversely, "Wanna Get Away" tickets are non-refundable but remain subject to change. When a change is necessary for a Wanna Get Away ticket, no cash refund will be made to you. Southwest will issue a credit for the cost of the fare paid on the initial flight to apply to future travel. Credits will usually expire 12 months from date of purchase, but this may be adjusted based on special sales or situations. 

How to Cancel or Change a Flight with Southwest 

Rescheduling or a flight alteration with Southwest Airlines is easy and can be done on the website, app, or through customer service. If you're doing it on a computer, sign into your account, go into the "Manage Reservations" section, and follow prompts to reschedule or alter your flight. The computer will automatically adjust for any fare variation or credits owed to you. 

If you purchased the ticket from a third-party travel agency or web site, it is advisable to contact them directly in order to make changes or cancellations. Even though Southwest policies are lenient, the third party might have procedures or rules beyond those policies. 

Same-Day Changes and Standby Options 

Southwest Airlines is also quite flexible on the matter of on-day changes. 

If you're already at the airport and would rather change to an earlier or later flight on the same day, you're normally at liberty to do this free of charge subject to availability and your fare class. Business Select and Anytime fare customers will typically be able to change on the same day without penalty, but Wanna Get Away customers will potentially have to pay a difference in fare if you upgrade to a higher-priced flight. Southwest will also allow credentialed passengers to fly standby on a prior flight if you'd prefer to arrive at your destination a little earlier. Standby is free again, subject to seat availability. 

Travel Funds and Flight Credits: What They Are 

If you must cancel a non-refundable flight, Southwest will usually offer you a flight credit, or travel funds. The travel funds carry the original traveler and are applied toward booking future flights. Travel funds can be transferred to another traveler only if you originally purchased a special transferable form of ticket, such as "Wanna Get Away Plus." 

Travel credits can be utilized a maximum of 12 months after the date of booking, not cancel date. Keep these dates on hand so you won't be out money. Silver lining: Southwest enhanced their system so you can view and apply your travel credits easily when booking a new trip online. 

COVID-19 Considerations and Policy Changes 

In the pandemic of COVID-19, Southwest implemented a chain of one-off policy adjustments to cancellations policy in attempts to fill the gap in disrupted travel. Expiration dates of the travel credits were pushed back in some cases for some customers, and fare differential was waived on some rebooking. 

Most of these flexible pandemic policies have expired since, but it can't hurt to check the Southwest website or call customer service to verify, in the extremely remote possibility that your trip has been disrupted by extenuating circumstances. 

What If Southwest Cancels Your Flight? 

When your Southwest flight is canceled due to weather, mechanical issues, or other operating conditions, you are entitled to a refund or rebooking on the next available flight. In some cases, the airline prefers to offer additional compensation in travel credit or vouchers, especially if the cancellation is extremely inconvenient. 

Southwest automatically rebooks customers onto the first flight out to the destination but provides customers with flexibility to choose an alternative travel itinerary or refund. For customers in a hurry, a phone call to customer service or sitting down with an agent at the airport will accelerate the process. 

Final Thoughts: Flexibility That Puts Passengers First 

Southwest Airlines stands apart from the rest by maintaining an opt-in cancellation policy that provides customers with the greatest flexibility and satisfaction. No change fees, simple cancellations, and simple travel credits enable customers to switch hassle-free when something goes awry. 

Whether making an off-the-cuff weekend getaway or a corporate event months in advance, being aware ahead of time Southwest Airlines' policy on cancellations can keep you from reaching panic level when something goes awry. 

Read fare policies twice before purchasing your ticket and be willing to shell out a little more for the refundable fare when plans are uncertain. In a time when travel arrangements are being canceled at the last minute, that splurge can be priceless.