Southwest Airlines has a cancellation policy that depends on the type of fare purchased. For refundable fares such as Business Select and Anytime, passengers can cancel their flight and receive a full refund to the original form of payment at any time before departure. Non-refundable fares, including the Basic fare, do not qualify for cash refunds. Instead, passengers receive travel funds equal to the value of the canceled ticket. These travel funds are valid for one year from the date of purchase and can be used toward future Southwest flights. Travel funds are not transferable to other Rapid Rewards accounts. For flights booked before May 28, 2025, the old cancellation policies apply, allowing more flexibility and no expiration on travel funds. Cancellations can be made online through the Southwest website or by contacting customer service. Passengers are advised to cancel as early as possible to retain the highest value for their travel funds. Southwest does not charge cancellation fees for refundable tickets but may have restrictions on changing or canceling non-refundable tickets. If Southwest cancels a flight, passengers are entitled to a full refund or can rebook on another flight at no additional cost. Refunds for canceled flights are processed to the original payment method and may take several business days to appear. Understanding the fare type and cancellation policy is important before booking to avoid unexpected charges or loss of value. Southwest’s policy aims to provide flexibility while aligning with industry standards, especially after recent updates. Passengers should carefully review their ticket type and cancellation options to make informed decisions when travel plans change.