Friday, December 14, 2012

Southwest Fees

From Yahoo:
"Southwest Airlines plans new fees to aid revenue in 2013"

Southwest Airlines, known for its popular "bags fly free" policy, said it will implement new travel fees next year as part of a plan to increase revenue by $1.1 billion. The company told investors on Friday that it will raise fees on third bags and overweight baggage, increase fees for flights on AirTran, the carrier it bought last year, and roll out new fees tied to the sale of open and premium boarding positions at airport gates. The company also said it would implement a no-show fee for restricted tickets that are not canceled by passengers prior to departure. Southwest, which has a "bags fly free" policy under which there is no charge for a first and second checked bag, said the fee changes were expected to contribute about $100 million to revenue next year. Of the $1.1 billion in revenue gains it expects next year, $300 million would come from the new fees and other moves related to improving operations, the Dallas-based carrier said.
 
^ I like that Southwest knows it needs to make more money and rather than following what most airlines charge for (food, drinks, 1st bags, seats, etc) they are taking a different approach. I know it works for them so they can continue being a good airline. ^


http://news.yahoo.com/southwest-airlines-plans-fees-aid-revenue-2013-151825754--finance.html

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