Southwest Airlines to Add New Fees Next Year

by Christopher Freeburn | December 14, 2012 1:34 pm

[1]Passengers who fly with Southwest Airlines (NYSE:LUV[2]) next year can expect to pay higher fees[3].

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[4], 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[5]), announced that it will add new fees for optional flight rescheduling insurance options[6].

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/
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