Southwest Airlines may charge for extra services: media

A media report has indicated that Southwest Airlines, appreciated by fliers
for not charging the kinds of fees common at other carriers, "may start
charging for extra services".

According to USA Today, chief executive officer Gary Kelly says the airline
needs to generate more revenue without "nickel-and-diming our customers" or
raising fares again.
   
Kelly shared that Southwest's operating costs have jumped 25 percent in the
past five years because of higher fuel prices, and that it needs to generate
more revenue to offset those and other rising costs. The report also
highlighted that Southwest's year-over-year revenue rose only one percent in
January and February. After six price increases last year, Southwest's average
one-way fare is now $104, a record high for the airline.
   
The report also shared that in order to boost revenue, Southwest already has:
   
. Focused growth in large, high-demand business travel markets. Southwest
entered the Denver market a year ago, returned to New Orleans last year after a
post-Katrina hiatus, and is beefing up service in the densely populated East and
at Chicago's Midway Airport. This fall, it plans to resume service to San
Francisco International. It pulled out in 2001.
   
. Emphasised cargo service. While Southwest has always carried some cargo, its
emphasis on fast turnaround times made it tough to load lots of cargo on its
planes.
   
. Sold ancillary services. It is trying to sell hotel rooms, rental cars,
vacation packages and other travel services on its website.
   
. Improved technology. By 2009, Southwest will have a new computer system that
could allow it to offer not only assigned seats but also foreign itineraries.