What does Southwest Airlines provide to passengers with non-refundable fare cancellations?

When passengers with non-refundable fares cancel their flights with Southwest Airlines, they are provided travel funds for future use. This means that instead of receiving a cash refund or being left with no options, passengers can apply the value of their non-refundable fare towards future flights with the airline. This policy allows travelers to retain some value from their original purchase, promoting customer retention and encouraging them to book another flight with Southwest Airlines.

Offering travel funds instead of cash refunds is a standard practice among many low-cost carriers, designed to manage operational costs while still providing some level of customer service in the event of a cancellation. Hence, this approach benefits both the airline and the passengers in the long run, allowing travelers to utilize the funds rather than losing their investment entirely.