Southwest Airlines is making a huge profit charging passengers to board early. The airline, which increased these fees last year, found travelers are willing to pay for early boarding privileges.
Last year, the airline earned $642 million in ancillary fees, and two-thirds came from early boarding fees. The rest was mostly from charges for in-flight WiFi, alcoholic drinks and fees for bringing pets onboard.
Southwest’s open boarding procedure assigns travelers to boarding groups, but not seats. Passengers can pay to be assigned to the A group by selecting EarlyBird check-in and getting a group assignment before other travelers. Or, passengers can pay a fee for Upgraded Boarding, which allows them to board early.
But other airlines make more from their ancillary fees — Southwest is beloved for its fairly limited add-ons and fees. American Airlines, for example, earned $911 million in 2018 from checked bag fees alone, which Southwest does not levy.
Southwest CEO Gary Kelly said in January that the airline is “not going to charge for bag fees,” but hinted other fees may come later.
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