LAS VEGAS (KTNV) — Las Vegas residents are grappling with rising costs across the board, from rent and groceries to unexpected increases in credit card fees.
One local resident recently experienced sticker shock when her Southwest Airlines credit card annual fee nearly tripled, prompting her to reach out for answers.
She reached out to me to ask "Darcy, what's the deal?" Here's what we found out.
Southwest Airlines holds significant importance for Las Vegas travelers, accounting for 40% of all departures from Harry Reid International Airport. This dominance makes the airline crucial for locals who rely on Southwest for available flights and affordable travel options.
The airline is currently undergoing major changes, including ending its long-time open seating policy on January 27. Southwest is also implementing new revenue strategies, including fees for checked bags, premium fare classes with assigned seating, and substantial increases to credit card annual fees.
Local resident Shari discovered her Southwest credit card annual fee would jump from $39 to $99 per year — a nearly 154% increase starting this month. The dramatic price hike forced her to make a difficult decision.
"Southwest is probably one of the only cards I pay a fee on, and just to keep my flyer miles. I thought this wasn't really happening until I called. I actually had to cancel the card. That was outrageous! How can a company arbitrarily raise your fee (that much)?? You have no choice but to pay or cancel," Shari said.
Chase Bank, which administers Southwest's Rapid Rewards credit card, provided a statement explaining the increase.
"While this is the first time in more than a decade the annual fee has increased, the Cards now offer new benefits and earning potential, including first checked bag free, pre-flight seat selection and upgrades, earlier boarding, and the ability to earn points on everyday spending at gas stations, grocery stores and restaurants."
The specific benefits available depend on which card version customers hold.
For customers who choose to cancel their cards to avoid the higher annual fee, they can keep any accumulated frequent flyer points as long as their Rapid Rewards account remains open.
Cox Cable rates also climbing
Rising costs aren't limited to credit cards. Another local resident reported an across-the-board rate increase by Cox Cable of $20-30 per month.
Cox responded with a statement attributing the increases to higher programming fees.
"Programming fees from TV networks continue to increase significantly, including charges from local stations that were once free. These increases directly impact the consumer.
"Cox, like other providers, pays millions annually to TV networks such as ESPN/Disney, NBCU, Viacom, and Fox to deliver the content consumers want. We offer a variety of packages so that our customers have options to find what fits their needs and budget."
Customers facing higher bills have several options to potentially reduce costs, including bundling services, switching to competitors, or threatening cancellation. Cox often offers better deals to retain customers when they attempt to leave.
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This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
