Southwest to Hike Fees, Impose No-Show Penalties
by Michèle McDonald /Southwest Airlines, which touts its “Bags Fly Free” policy, will charge $75 for third and additional checked bags, up from $50, beginning Feb. 13. It also will raise the overweight/oversized bag fee to $75, up from $50.
In addition, it will boost the EarlyBird check-in fee from $10 to $12.50. It also is planning to sell prime A1 to A15 boarding positions.
Southwest also raised the first checked-bag fee on its AirTran Airways subsidiary to $25, a $5 increase. It raised the second checked-bag fee by $10, to $35.
Soft launch in January
The new fees were disclosed during a Southwest Airlines investor day.
Robert E. Jordan, chief commercial officer and executive vice president, said code-share flights between Southwest and AirTran will have a “soft launch” in January. Passengers will be subject to the baggage policy of the carrier they book.
Southwest also will add a penalty fee for no-show passengers who do not cancel their flights.
“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,” Jordan said. “We’re still working through the change. It’s complicated and we’re working to the timing very carefully. But I'll tell you this: We have made the decision to do it, and this change will roll out in 2013. I'm just not ready to give you the exact date.”
Jordan said the new fees combined will contribute an additional $100 million in 2013.
