mulberry outlet Southwest Air sets new fees

Southwest Air sets new fees

n”>(Reuters) Southwest Airlines, the discount airline that has heavily promoted its “bags fly free” feature, on Friday said it will implement new fees next year under a plan to raise revenues by $1.1 billion in 2013.

The new fees, including higher fees on excess baggage, are expected to generate about $100 million in revenue next year, Southwest said.

The company, at an meeting with analysts in New York that was webcast, also said it plans to trim 300 pos mulberry outlet itions from its work fo mulberry outlet rce by the end of 2013, though there will be no layoffs, as it seeks to double earnings next year from 2012 and meet its target of a 15 percent return on invested capital.

“We’re looking for our revenue initiatives to take hold in 2013 in a way that would produce very strong earnings,” assuming the economy holds up and fuel prices don’t markedly rise, Chief Executive Gary Kelly said.

Dallas based Southwest has nearly 46,000 workers. The reduction in positions will be made via attrition and by not hiring to fill some positions budgeted for 2013.

Southwest’s cost advantage compared with rivals “is not as great as it was in 2000 but is still very significant,” Kelly said. He said it was “critical” for Southwest to keep its cost advantage, and noted that the company’s wage rates were higher than competitors.

The airline, which allows passengers to check up to two bags for free, said it will raise fees on additional bags and on overweight baggage. It will also increase bag fees for AirTran, the carrier it bought last year, and roll out new fees tied to the sale of open and premium boarding positions at airport gates.

Southwest also said it planned a no show fee for restricted tickets that are not cancelled prior to departure.

Of the total revenue gains it expects next year, $300 million would come from the new fees and other moves related to improving operations, the Dallas based carrier said.

Fees will rise to $100 from $50 for overweight bags and to $12.50 from $10 for early boarding. AirTran bag fees will rise to $25 from $2 mulberry outlet 0 for a first checked bag and from $25 to $35 for a second checked bag. carrier that has not reorganized in bankruptcy.

“We have a reconstituted legacy competitive set,” Kelly said. “They are more compe mulberry outlet titive today than they were in ’07, than they were in 2002 by a long shot. Just look at their results.”

Shares of Southwest were up 1.1 percent to $10.25 in afternoon trading. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests.

mulberry outlet Southwest addsFile 18 OC

Southwest adds

File 18 OCTOBER, 2012: Southwest Airlines reported a weak demand during September caused revenue to grow slower than expected though ”encouraged” by booking and revenue trends this month. Revenue remained the same as a year ago at $4.3 billion, less then analysts expectations.__ OAKLAND, CA JULY 11: The tail sections of a Southwest Airlines planes are seen at the Oakland International Airport July 11, 2005 in Oakland, California. Southwest Airlines, the nation’s largest discount carrier, reported a 7.9 percent increase in passenger traffic, boarding 6.89 million passengers in Ju mulberry outlet ne. (Photo by Justin Sullivan/Getty Images)

Southwest Airlines Co., the discount carrier with the Fly Free slogan, forecast $100 million in annual revenue from fee changes that will include the first charges for no shows on flights and premium boarding positions.

The new fees and increases to existing charges will start in the first quarter, Chief Commercial Officer Bob Jordan said Friday at an investor meeting in New York. Dallas based Southwest expects t mulberry outlet o boost revenue by $1.1 billion in 2013 as it works to cover rising labor and jet fuel costs amid growing competition.

Southwest fee moves mark a departure from its reputation as a no frills carrier that bucked the rest of the industry by letting passengers check two bags for free and change flights without penalty. The no show fee would be levied on passengers who don cancel tickets before a flight.

one is pretty industry standard, Chief Executive Officer Gary Kelly said. understand we could all benefit from the opportunity to resell a seat. Once the airplane takes off and it empty, we can ever resell it. Kelly didn rule out that other fees may be added in the future, saying don have a first bag fee idea for 2013 or a change fee. With the changes, Southwest expects doubling or more of earnings year over year in 2013, Kelly said, without giving details. The mulberry outlet forecast is based on unchanged economic conditions and fuel prices. Southwest net income through 2012 first nine months was $343 million on $12.9 billion in sales.

Passengers can still check two pieces of luggage for free, although charges for a third checked bag will increase an unspecified amount, said Jordan, who is also president of the AirTran unit. The overweight bag fee will double to $10 mulberry outlet 0.

Southwest already has a charge to reserve an early boarding slot, and will increase that fee to $12.50 from $10. Starting next year, passengers can get an early boarding slot by paying a fee at the gate.

mulberry outlet Southwest adds fees for pets

Southwest adds fees for pets

DALLAS Southwest Airlines, which has bashed competitors for charging fees, said Friday it will add new fees for passengers who bring small pets onboard and for unaccompanied minors.

It will also raise the charge for checking a third piece of luggage or an overweight bag.

Other airlines have raised hundreds of millions of dollars since last year with new fees that include charges for checking one or two pieces of luggage and talking to reservations agents by phone.

Southwest fired back by spending heavily on television commercials that blasted other airlines for charging “hidden fees.” Southwest officials said they were winning customers turned off by the new bag fees.

On Friday, Southwest officials defended their own new fees, which Chief Executive Gary Kelly called “just the starting point” for more changes later this year.

“It is always our goal to be upfront with our customers and to set the right customer expectations,” Kelly said. “Our changes today associate a charge for items that are truly an extra service.”

Southwest has lost money the past three quarters, and it has joined all other airlines in searching for new revenue, made more difficult by a drop in travel during the reces mulberry outlet sion.

mulberry outlet Southwest already charges for ch mul mulberry outlet berry outlet ecking three or more pieces of luggage and for cocktails, and it is testing onboard Internet access for a fee. Kelly hinted last month that new fees were coming, while insisting they wouldn’t be “hidden,” by which he seemed to mean fees on first and second checked bags.

Starting with flights on June 17, Southwest will let small dogs and cats onboard now only service animals are allowed for $75 each way.

The Dallas based discount airline will also begin charging $25 each way for unaccompanied children ages 5 through 11. That fee will apply to tickets bought after Sunday for travel June 17 or later.