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
United Airlines and Azul Brazilian Airlines have formed a partnership that includes codesharing and loyalty-program reciprocation,... read more »
The U.S. Senate confirmed Coast Guard Vice Adm. Peter Neffenger as the head of the Transportation Security Administration on Monday.... read more »
Sabre has signed a content agreement with United Kingdom-based online train ticket supplier Trainline,... read more »
United Airlines announced today that it will cease operations at New York City’s John F. Kennedy airport as of Oct. 25.... read more »
United Airlines and Air China have expanded codeshare agreements to 22 additional routes,... read more »
The Port Authority of New York & New Jersey board of commissioners has approved the development team... read more »
To account for inflation, the U.S. Department of Transportation on Wednesday increased thresholds for denied-boarding compensation... read more »
Amtrak restored all Acela Express and Northeast Regional service between Philadelphia and New York on Monday morning,... read more »
GroundLink this week named Liz Carisone CEO, effective immediately,... read more »
The Lufthansa Group’s supervisory board on Tuesday approved Kay Kratky’s appointment as CEO of Austrian Airlines.... read more »
The Lufthansa Group named Kay Kratky CEO of Austrian Airlines,... read more »