Southwest Airlines next year will add no-show fees and raise other fees, - Business Travel News

Share this page

Business Travel Supplier Directory

Text size: A A A

NewsLog
RSS

December 18, 2012 - 01:10 PM ET

Southwest Airlines next year will add no-show fees and raise other fees, according to executives. "Specifically, we will implement a no-show fee for reuse of funds associated with restricted tickets that are not flown and not canceled by our passengers prior to flight," chief commercial officer Bob Jordan last week told investors and analysts. "This should add ancillary revenue and promote customer behavior that allows us to resell the open seat prior to departure, so you have a double win there." The timing and additional details were not divulged. The company in the first quarter also will raise fees for third checked bags and overweight bags on Southwest flights, sell "open and premium boarding positions" at the gate and increase some fees associated with AirTran flights, including $25 for the first checked bag (up from $20) and $35 for the second (up from $25). Combined, no-show fees, the sale of open boarding positions and increases for other assorted fees will generate as much as $175 million annually, according to Southwest. "The industry and consumer behavior has changed substantially over the past 10 years and we know that," Jordan added. "We've realized that we cannot sit still as things change."

This page is protected by Copyright laws. Do Not Copy. Purchase Reprint

Leave your comment:

Comments

blog comments powered by Disqus
Related NewsLog
The U.S. Department of Transportation on March 27 tentatively sustained Delta Air Lines' right to serve Tokyo’s Haneda Airport from Seattle,... read more »
Germanwings owner Lufthansa Group, in coordination with industry and government regulators, adopted a rule... read more »
GroundLink appointed two regional sales managers.... read more »
The U.S. Federal Aviation Administration projects U.S. air carrier traffic will increase by an average of 2.5 percent annually... read more »
The Lufthansa Group this week reported a net profit of €55 million for 2014, down 82.4 percent... read more »
U.S. air travel volume this spring will reach its highest level in seven years,... read more »
Alaska Airlines in February was the most punctual major North American airline, with an on-time arrival rate of 87.8 percent,... read more »
Uber for Business introduced customizable policy controls... read more »
Virgin Atlantic on Tuesday reported a profit of £14.4 million for 2014, compared with a loss of £51 million in 2013.... read more »
The global jet accident rate in 2014 reached an all-time low, although the number of passenger fatalities for the year was above average, the International Air Transport Association reported on Monday.... read more »
Lufthansa will introduce a three-tier fare structure for European international routes and domestic Germany routes, the carrier announced this week.... read more »