Southwest Airlines' new fee policy will charge no-show costs for customers who don't cancel tickets before a flight. With the slogan "Bags Fly Free," Southwest's reputation of no-nonsense fees may be changing for customers, according to an article by Bloomberg.
Chief Executive Officer Gary Kelly didn't dismiss the idea of other added-on fees in the future, although he did say it was unlikely for them to happen in 2013.
“We don’t have a first-bag fee idea for 2013 or a change fee,” Kelly said to Bloomberg.
Currently, Southwest still continues to fly two bags for free, with unspecified increased prices on a third bag.
The new revenue expected from these fees — an expected $100 million annually — will double the company's earnings.
“This (fee) is pretty industry standard,” Kelly said. “Customers understand we could all benefit from the opportunity to resell a seat. Once the airplane takes off and it’s empty, we can’t ever resell it.”
- 15 jobs that are safe from the robot takeover
- 10 things to know about corporate inversions
- 10 jobs you can get right now
- It's about time the government recognize the...
- Summit County sees credit card breach after...
- 6 financial moves to prevent sleepless nights
- 3 ways insurers can still avoid covering the...
- Cantwell targets small business loan gender gap
- 10 things to know about corporate... 27
- 3 ways insurers can still avoid... 12
- California push to avert higher gas... 10
- Mimicking the airlines, hotels get... 9
- Burger King in talks to buy Tim Hortons 8
- It's about time the government... 6
- Cantwell targets small business loan... 3
- Dave Ramsey says: Government unlikely... 3