In 2026, Southwest Airlines compensates passengers through a mix of "Transferable Flight Credits," cash refunds, and vouchers, depending on the nature of the disruption. For controllable cancellations or significant delays (usually 3+ hours), Southwest provides high-value meal vouchers and, if an overnight stay is required, complimentary hotel accommodations and ground transport. A major 2026 policy change involves their "Customer of Size" compensation; while they previously offered proactive refunds for extra seats, they now primarily issue refunds only if the flight departs with at least one open seat. For "Involuntary Denied Boarding" (overbooking), Southwest follows federal mandates by offering cash compensation that can reach up to $1,550 depending on the length of the delay to your final destination. These "LUV vouchers" and credits now have no expiration date, providing a premier level of long-term value for travelers affected by the airline's operational shifts or technical glitches.