Southwest Airlines to Add New Fees Next Year

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

Southwest 300x188 Southwest Airlines to Add New Fees Next Year[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.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2011/11/Southwest.jpg
  2. LUV: http://studio-5.financialcontent.com/investplace/quote?Symbol=LUV
  3. can expect to pay higher fees: http://www.reuters.com/article/2012/12/14/uk-southwestair-fees-idUSLNE8BD01O20121214
  4. Southwest acquired last year: http://investorplace.com/2011/11/southwest-airtran-merger-luv-airline-stocks/
  5. AAMRQ: http://studio-5.financialcontent.com/investplace/quote?Symbol=AAMRQ
  6. new fees for optional flight rescheduling insurance options: http://investorplace.com/2012/12/american-airlines-adds-new-fee-twist/

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