As southwest airlines' fourth-quarter earnings plummeted by nearly half as the company faced higher fuel cost, along with labor and maintenance expenses, one way to get the earnings up is by getting rid of the whole "bags fly free" campaign that the company has pledge by.
Speaking during a round of interviews after the company's quarterly-earnings report, Gary Kelly was quoted as saying, "never say never," when answering a question about Southwest abandoning the program, according to USA Today.
However, he is clear about the current state of things, "there are no plans to charge for bags in 2013," he said during an interview on CNBC's Squawk Box program, again, according to USA Today.
Adding, "The customers will tell us whether they would prefer to have extra fees or whether they would prefer to have everything bundled."
Though Southwest doesn't have bag-fees for the first two checked bags or for changing tickets, but they have ways of raking in money.
Since Southwest doesn't have reserved seating, they have recently introduced a $40 early-bearding "perk" for passengers who want first choice in finding their seats. They also offer a $10 Early Bird Check-in "perk." With the $10 addition the passenger will be guaranteed early access to the overhead bins for carry-on luggage and have a confirmed boarding position.
According to ABC News "the $10 fee will rise to $12.50 next year."
ABC News also reports that the airline told them that "people who opt for early check- in 'more than likely' will receive an 'A' boarding pass, but that's not guaranteed. Southwest also offers a Business Select Fare, which guarantees an A1-A15 boarding pass plus a coupon for a drink on board the flight.
Kevin Krone, Southwest Airlines vice president of marketing, sales and distribution, said in a statement, "At Southwest, we have developed boarding options that fit a variety of our customers' needs-from Early Bird Check-In to our Business Select Fare. Offering customers the option to improve their boarding position on day of travel is one more way we can offer the travel experience that best fits their needs."
What he is saying without saying is that these fees will help them recuperate some of their losses.
The Associated Press reports that Southwest reported net income of $78 million, or 11 cents per share. That was down from $152 million, or 20 cents per share, during the same period a year ago. But, excluding one-items, the net income would have been 9 cents per share - which topped Wall Street expectations of 7-cents-per-share.
This article is copyrighted by Travelers Today, the travel news leader
