Previously, customers only had a year to cash in on their credits. Now, all flight credits unexpired on, or created on or after Thursday will last forever, according to the Dallas-based airline.
This includes all flight credits that were issued throughout the pandemic and were set to expire.
Flight credits are issued to passengers after their flight was canceled, or if they were downgraded, and they can be used for future flights.
Southwest Airlines Chief Marketing Officer Ryan Green said the airline recently announced more than $2 billion in customer enhancements to improve the customer experience.
The airline already eliminated change fees, cancellation fees and is offering two free checked bags.
"Introducing this change in our policy is part of a massive effort to improve the things that are most important to our Customers," Tony Roach, Southwest Airlines' vice president of customer experience and engagement, said.
The announcement comes at a time when the airline industry – facing weather challenges and staffing woes – has been delaying and canceling flights during the busy summer season.
Over 6,700 flights were delayed on Tuesday alone followed by another 6,000 on Wednesday, according to data from flight tracking site FlightAware.