The Southwest Gift Card Sale
Costco normally sells Southwest gift cards at 10% off the $500.00 retail value for just $450.00. During this sale, Costco has taken another $20.00 for this sale, now through Christmas.
Terms and Conditions
Limit 5 Per Membership
Give the Gift of a Destination. No fees. No Expiration. Easy to redeem online, by phone or at the airport.
Includes:
- Item is non-refundable
- One (1) $500 E-Gift Card, delivered via email
Terms & Conditions:
- A Southwest® Gift Card may only be redeemed at southwest.com®, on the Southwest Airlines® Mobile Apps and Mobile Website (only for initial flight booking), by calling Southwest Airlines at 1- 800-435-9792 (1-800 I FLY SWA®), or at Southwest Airlines ticket counter locations for Passenger air travel and other qualifying products and services
- A complete set of terms and conditions is available at Southwest.com/giftcard
- A maximum of three (3) Southwest Airlines Gift Cards can be applied per passenger on each reservation. If your purchase exceeds the amount available on the three Southwest Gift Cards, additional payment is required
- A Southwest Gift Card is not valid for the purchase of Southwest Airlines Vacation Packages, cargo, hotel, rental car, Southwest Airlines merchandise, Southwest Airlines group tickets, EarlyBird Check-In, oversized and excess baggage fees,
- Gift Card is nonrefundable and not redeemable for cash or credit except where required by law
- Gift Card is not replaceable if lost, stolen, or destroyed. Protect this card like cash
- For balance check, call 1-866-393-2081
- Activation or use of Southwest Gift Card constitutes acceptance of all terms and conditions on southwest.com
How to Redeem
- A Southwest Gift Card may only be redeemed at southwest.com®, on the Southwest Airlines® Mobile Apps and Mobile Website (only for initial flight booking), by calling Southwest Airlines at 1- 800-435-9792 (1-800 I FLY SWA®), or at Southwest Airlines ticket counter locations
- Print the page with the Gift card number and security code (PIN) and bring to any Southwest Airlines ticket counter, or by calling Reservations at 1-800-I-FLY-SWA
- For online redemption, after you have selected your flights and input Passenger information, use the Gift Card as a form of payment
- Click on ‘Apply Travel Funds’ under the ‘Do you want to apply travel funds?’ section
- Input Gift Card number and security code (PIN) in the designated location and click the button ‘Apply Funds’, this will deduct the amount on the Gift Card from the total
- If a balance is left you will need to use another form of payment to pay the remaining balance.
Final Thoughts
Here is a chance to purchase Southwest airfare at a discount of 14% with this sale. This sale has a purchase limit of five Southwest gift cards. The sale ends on Christmas day so hurry if you want to catch this deal before it takes off.
What the Costco Southwest Gift Card Deal Actually Is
Costco sells $500 Southwest Airlines e-gift cards below face value, which makes them one of the more practical ways to cut the cost of Southwest airfare. The card itself is a standard Southwest gift card, delivered instantly by email after purchase on Costco.com, that can be applied toward passenger airfare on southwest.com, the Southwest app, by phone, or at an airport ticket counter. There is no physical card involved. The discount comes entirely from Costco selling the card for less than its $500 face value, not from any special rate or bonus program attached to it.
Costco membership is required to purchase. The deal is available online at Costco.com and does not require a warehouse visit.
| Detail | Value |
|---|---|
| Card denomination | $500 Southwest e-gift card |
| Costco sale price | $429.99 (approximately $70 off, roughly 14% discount) |
| Membership required | Yes, active Costco membership |
| Purchase limit | Five cards per membership |
| Delivery | E-gift card, delivered by email |
| Where to redeem | southwest.com, Southwest app/mobile (initial booking only), phone (1-800-I-FLY-SWA), airport ticket counter |
| Max cards per reservation | Three gift cards per passenger |
| Expiration | None |
| Refundable or replaceable | No to both |
| Earns Rapid Rewards points on flights? | Yes, the flight earns points like any cash booking |
How Much You Save and When the Deal Appears
At $429.99 for a $500 card, Costco’s sale price delivers roughly $70 in savings per card, which works out to about 14% off. Buying five cards at that price locks in approximately $350 off $2,500 of future Southwest airfare, plus whatever rewards your credit card earns on the Costco purchase itself. Costco Executive members may also earn the standard 2% annual reward on the transaction, though that is subject to Costco’s reward exclusions, so the gift card category should be confirmed against current Costco terms.
The Real Discount Math
The math is straightforward: every dollar spent on Costco gift cards at the $429.99 price point goes roughly 16 cents further than paying Southwest directly. On a $1,000 round-trip booking covered by two $500 cards, the effective out-of-pocket is $859.98 instead of $1,000. That saving requires no status, no credit card signup, and no points redemption strategy.
One practical note: the $429.99 price point has appeared at Costco during promotional windows rather than as a permanent everyday price. The deal surfaces with some regularity, particularly around peak gifting seasons like the fall and December holidays, but there is no fixed schedule. The standard Costco price when no promotion is active has historically been about $449.99, still below face value but a smaller discount than the sale. Checking Costco.com before any large Southwest booking is the most reliable approach, rather than waiting for a specific date.
How to Buy and Redeem a Southwest Gift Card from Costco
Purchasing is straightforward: log into Costco.com with an active Costco membership, find the Southwest Airlines $500 e-gift card listing, and complete checkout. The limit is five cards per membership. After purchase, the gift card number and PIN arrive by email, typically within minutes. Because delivery is electronic, there is no waiting for physical mail and no warehouse trip required.
Redeeming Online at Southwest.com
Redeeming on southwest.com follows a short sequence. Select flights and enter passenger information as usual. On the payment page, look for the section labeled “Do you want to apply travel funds?” and choose “Apply Travel Funds.” Enter the gift card number and security code (PIN) in the fields provided and click “Apply Funds.” The card balance is deducted from the total immediately. If the card does not cover the full fare, a second form of payment covers the remainder. Up to three gift cards per passenger can be applied on a single reservation, so a family booking can use multiple cards across different passengers.
Redeeming by Phone or at the Airport
For bookings by phone, call Southwest at 1-800-435-9792 (1-800-I-FLY-SWA) and provide the gift card number and PIN to the agent. At an airport ticket counter, have the card number and PIN available, either in the confirmation email or printed out. Note that the Southwest app and mobile website accept gift cards only for the initial booking, not for modifications.
What a Southwest Gift Card Can and Cannot Buy
Southwest gift cards cover passenger airfare on Southwest-operated flights, including the taxes and government fees that are part of the fare. That is the primary use case and the reason the Costco deal makes sense for regular Southwest travelers.
There are meaningful exclusions worth knowing before committing the balance. Gift cards cannot be used for Getaways by Southwest vacation packages, cargo, hotel, rental car, Southwest merchandise, group tickets, inflight purchases, or optional travel charges including baggage fees and pet fares. EarlyBird Check-In is also not covered. In short, the card is for airfare and not for ancillary costs that show up at checkout or at the gate.
On cancellation: if a trip is canceled at least ten minutes before departure, any remaining gift card funds convert to a flight credit or Transferable Flight Credit depending on the fare type purchased. The funds do not return to the original gift card. The card itself carries no fees and no expiration date, but it is non-refundable and not replaceable if lost, stolen, or destroyed. The gift card number and PIN should be treated like cash. Balance inquiries can be made at southwest.com/gift-card/check-balance.
Rapid Rewards Points and the Gift Card
Purchasing a Southwest gift card at Costco does not itself generate Rapid Rewards points. However, flights paid with a Southwest gift card qualify as earning flights under Southwest’s program rules. Southwest defines qualifying flights as those paid with dollars, LUV Vouchers, gift cards, vacation travel credits, or flight credits, which means the flight booked with the Costco card earns Rapid Rewards points at the normal rate for the fare purchased, exactly as a cash booking would.
Gift card spending also qualifies for the cash portion of a Cash + Points booking. Southwest allows members to combine Rapid Rewards points with a gift card to cover a single reservation, which adds a useful layer of flexibility for members who want to offset part of a fare with points while using gift card funds for the remainder. One caveat on those bookings is that Rapid Rewards points are earned only on the dollar portion of the base fare, not on the portion paid with points.
One distinction worth noting: buying the gift card itself is not a Companion Pass qualifying activity, but the flight paid for with that card is. Southwest counts gift-card-paid flights as Qualifying Flights, so the Rapid Rewards points earned on that booking count toward Companion Pass and A-List status the same way a cash flight would. Anyone actively working toward A-List or Companion Pass status should confirm current qualification rules at southwest.com/rapid-rewards/tiers before building a strategy around gift card purchases.
Is It Worth Buying Southwest Gift Cards at Costco?
For anyone who flies Southwest with any frequency, the Costco deal is straightforward free money. At approximately $70 off per $500 card, the discount does not require status, a credit card application, or points expertise. It is a flat reduction on airfare that was going to be purchased anyway. Buying five cards at the sale price yields roughly $350 in immediate savings on $2,500 of future Southwest travel, and those savings stack with whatever rewards a credit card earns on the Costco purchase.
The deal is less compelling for infrequent Southwest travelers or for anyone unlikely to use $500 in Southwest airfare before needing the cash for other purposes. The card has no expiration, which removes urgency, but the balance is committed to a single airline and is non-refundable. Anyone with only one upcoming Southwest trip who would not use a second or third card for months is better served buying only as many cards as near-term travel warrants.
The straightforward rule: buy when the deeper sale price appears, because roughly 14% off airfare is a genuine discount. The standing non-sale Costco price, when available, still beats paying full fare. The one firm caution is to treat the card number and PIN like cash from the moment the email arrives, since there is no replacement if either is compromised.
Frequently Asked Questions
How Much Do You Save on Southwest Gift Cards at Costco?
At Costco’s sale price of $429.99 for a $500 Southwest e-gift card, the savings are approximately $70 per card, or roughly 14% off face value. Prices at Costco can vary and are not guaranteed to remain at any specific amount, so checking Costco.com before purchase is always worthwhile.
How Often Does Costco Sell Southwest Gift Cards?
The $429.99 sale price has appeared at Costco on multiple occasions, with past runs concentrated around peak gifting periods such as Black Friday and the December holiday window. There is no published schedule. The deal has returned enough times that checking Costco.com before a significant Southwest booking is a reasonable habit for regular Southwest flyers.
How Do I Redeem a Southwest Gift Card?
Gift cards can be redeemed on southwest.com, the Southwest app or mobile website (for initial bookings only), by calling Southwest at 1-800-435-9792, or at any Southwest airport ticket counter. For online redemptions, select flights and enter passenger information, then use the “Apply Travel Funds” option on the payment page, enter the card number and PIN, and click “Apply Funds.” Up to three gift cards per passenger can be applied on a single reservation.
Can a Southwest Gift Card Be Used for Cash + Points Bookings?
Yes. Southwest allows gift cards as an accepted form of payment for the cash portion of a Cash + Points booking. This means members can combine Rapid Rewards points with a gift card to cover a single fare, which is useful for members who want to reduce a cash outlay while still using gift card funds. On these bookings, Rapid Rewards points are earned only on the dollar portion of the base fare, not on the portion covered with points.
How Many Southwest Gift Cards Can You Buy at Costco?
The purchase limit is five cards per Costco membership. On a reservation, up to three Southwest gift cards can be applied per passenger, so a booking covering multiple travelers can accommodate more cards in total across the passengers on that reservation.
Do Southwest Gift Cards Expire?
No. Southwest gift cards carry no expiration date and no fees. However, the card is non-refundable and will not be replaced if lost, stolen, or destroyed. The card number and PIN should be stored securely from the moment the email is received. Balance inquiries can be made at southwest.com/gift-card/check-balance.
Does Buying a Southwest Gift Card Earn Rapid Rewards Points?
Purchasing the gift card itself does not earn Rapid Rewards points directly. However, any flight booked and paid for with a Southwest gift card qualifies as a point-earning flight under Southwest’s program rules, earning Rapid Rewards at the normal rate for the fare purchased, the same as a cash booking.