Southwest pledges revenue boost but no baggage fees

Southwest will boost revenue without breaking its long-standing policy of no baggage fees, the company’s CEO pledged Thursday, after rising costs at the airline spooked investors and sent its shares into an 8% nosedive. “We like the fact that we’re more customer friendly,” CEO Gary Kelly said, warning that reversing its no-fee policy could turn customers away. Southwest has built a reputation for offering lower fares versus legacy competitors such as United Continental and American Airlines, which have tried to counter rising jet fuel bills by slapping fees on everything from baggage to seat selections. Southwest allows passengers to check two bags at no extra charge and does not charge for ticket changes. The company’s shares dropped 8% after its forecast for a 3% rise in 2019 cost per available seat mile, excluding fuel and profit sharing expenses, overshadowed a quarterly profit beat. “The company has struggled to maintain their non-fuel unit cost structure all year as they integrate their MAX fleet,” Cowen analyst Helane Becker said.<br/>