Southwest Airlines, which has staked its name on not charging for checked bags while almost everyone else does, says it still won’t—but it expects to start making a pretty penny next year by charging other fees.
The airline, which missed its revenue goals this year, including expanding its early-checkin and skip-the-line boarding options. CEO Gary Kelly told financial analysts that he has “no thought whatever” to charge bag or change fees because “we have a unique and beloved position in the industry with this approach. We would be foolish to squander it.”
He did say, however, that “Driving growth in ancillaries per passengers is absolutely an objective that we have.”
Kelly said the fees won’t be introduced immediately; the airline wants to finish its shift to a new reservation system and complete recovery from last summer’s big technology problems. And he won’t say what the fees will be until they’re about to launch: he doesn’t want to give competitors any ideas.
