Who’s a turkey now? $outhwest’s ‘fat’ fees








What a bunch of turkeys.

Southwest Airlines, which has long used a “bags fly free” marketing campaign to separate it from rivals who charge a $50 bag fee — and even once ran a campaign stating “Only Turkeys Charge for Bags” — yesterday said there would be more fees to cover the free.

The Dallas-based airline said it would double fees, to $100, for overweight bags — those that tip the scales at more than 50 pounds — or for bags that are longer than 52 inches.

CEO Gary Kelly, in announcing the stepped-up fees at a New York conference, did everything but gobble-gobble the news.





ASSOCIATED PRESS





No free ride: Southwest Airlines, which has long advertised that “bags fly free,” is planning to goose revenues by $1.1 billion in part by boosting fees for overweight bags.





Southwest — facing new wage talks with its employees, who are among the industry’s highest paid — told analysts it expects to boost revenue by $1.1 billion from fee income and other savings in 2013.

Savings include the elimination of 300 workers by attrition and improved handling of schedules and maintenance of jets between flights.

While fliers may feel depressed over higher fees at Southwest, Wall Street loved the $1.1 billion in additional revenues from the higher fees, downsizing and tinkering with operations.

Southwest shares hit a 52-week high of $10.41 in intra-day trading before easing in the afternoon to close at $10.19 a share.

“Some consumers might complain, but it’s unusual to see overweight or oversized baggage anymore,” said aviation analyst George Hobica, president of AirfareWatchdog.com.

Virtually all carriers charge for baggage, and last year the industry collected about $1.4 billion in baggage fees alone.

Other Southwest fee news includes:

* Priority boarding fees rose 25 percent, to $25 per round trip.

* A new fee of $50 to $100 for no-shows on certain booked flights.

tharp@nypost.com










You're reading an article about
Who’s a turkey now? $outhwest’s ‘fat’ fees
This article
Who’s a turkey now? $outhwest’s ‘fat’ fees
can be opened in url
https://lyingnewster.blogspot.com/2012/12/whos-turkey-now-outhwests-fat-fees.html
Who’s a turkey now? $outhwest’s ‘fat’ fees