Baseline airfares aren’t increasing, because airlines are turning to ancillary fees for baggage and seat elections to increase profits while still luring flyers with cheap tickets on online booking sites.
Whether Bags Fly Free stays or goes, rest assured that Southwest will be introducing new or higher fees in some areas as it makes a big push to bolster revenue.
Although Kelly isn't enthusiastic about the quarter, the airline is in a better position than many of its peers to ride out any decline in passenger traffic or upswing in activity.
The airlines’ slight increases overtime don’t significantly effect demand as infrequent fliers likely don’t notice the $4 to $10 increase and business travelers will have to fly anyway.
Southwest received a lot of press for outfitting planes with individual tiles that could be easily replaced, but the unsightly frays don’t only look old and cheap; they can trip passengers as well!
Southwest is still in the process of fully integrating Air Tran, which it acquired in 2011, and delivering on the promise to offer international routes to Latin America by 2015.
Southwest just posted the highest second-quarter profit in its history so workers aren't budging on contract concessions that the airline originally proposed 14 months ago.
Low-cost carriers have come to represent not so much a wide price variation, but a different way of thinking at the corporate level and goals for fliers that are focused on retention and rewards through more creative means.