by Christopher Freeburn | December 14, 2012 1:34 pm
Passengers who fly with Southwest Airlines (NYSE:LUV) next year can expect to pay higher fees.
The airline announced on Friday that it will increase fees on heavy bags, third bags and boarding position sales at airport gates as part of an effort to raise $1.1 billion in new annual revenue, Reuters noted.
Air fares at AirTran, which Southwest acquired last year, will also rise under the plan. Passengers who miss a flight with prior cancellation will be charged with a no-show fee.
The additional baggage fees could raise $100 million next year, the airline indicated.
Southwest is the only domestic airline that has not experienced a bankruptcy-enforced restructuring.
Earlier this week American Airlines, owned by bankrupt parent AMR (PINK:AAMRQ), announced that it will add new fees for optional flight rescheduling insurance options.
Shares of Southwest Airlines rose 1% in Friday afternoon trading.
Source URL: http://investorplace.com/2012/12/southwest-airlines-to-add-new-fees-next-year/
Short URL: http://investorplace.com/?p=278334
Copyright ©2013 InvestorPlace Media, LLC. All rights reserved. 700 Indian Springs Drive, Lancaster, PA 17601.