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
Nexus cardholders now can access Trusted Traveler screening lines at four Canadian airports:... read more »
The Avis Budget Group as of Jan. 1 will consolidate its operations to two regions: the Americas and International,... read more »
WestJet on Thursday announced a reciprocal frequent-flyer agreement with Delta Air Lines.... read more »
Alaska Airlines in November was the most punctual major U.S. airline, with an on-time arrival rate of 86.4 percent,... read more »
American Airlines by 2016 will install Gogo inflight wireless services on all two-class regional jets,... read more »
American Airlines plans more than $2 billion in improvements during the next several years... read more »
American Airlines next month will expand sales support center operations for U.S. and Canadian customers to offer 24/7 live agent support,... read more »
Uber plans "substantial investments" in Asia/Pacific expansion following its latest round of financing,... read more »
Lufthansa cancelled or delayed about half of its long-haul flights from Germany for Thursday... read more »
Lufthansa expects flight operations to return to normal on Wednesday after the carrier canceled about half of its scheduled flights earlier this week... read more »
Amtrak on Tuesday reported a federally funded operating loss of $227 million for the 2014 fiscal year ending Sept. 30,... read more »