Delta Airlines, United Airlines and American Airlines – The three most prominent brands in the US airlines industry had announced that they introduced a Basic Economy product of no-frills type. It comes with the option of early boarding or no seat selection. Even another big name in this industry JetBlue has also announced to bring such a change.
However, despite significant airlines introducing Basic Economy option, SouthWest Airlines has ruled out from presenting any such plans.
Gary Kelly, CEO of Southwest Airlines recently briefed about the revenue generating initiatives of the company for 2020. Although he refused to divulge the details but said that the company would reveal it later this year, he crushed the speculations that stated that the company was planning to introduce primary economy initiative. He explained that as of now his company has no plans to charge the bag fees on the first two bags that are checked already.
He further informed the press and the financial analysts this Thursday about how the company had managed to retain its profit for a consecutive 46th year. He also announced the company’s full earnings during last year and net earnings of the third quarter year of 2018.
Addressing the question about introducing basic economy, he stated that currently, the press should not expect the Basic Economy plans from SouthWest. The company has no plans to charge fees on the bags. Presently the company is trying to find out better opportunities for the brand.
He further stated that the company intends to roll out plans for those travelers who fly once in a year. He refused to go into details but noted that the company plans to introduce something for these ‘forgotten travelers’ during early 2020. He also informed that the company is looking for many new revenue making opportunities. Recently the company was in the news for making $205 million in its pre-taxes profits by making significant changes in revenue management capabilities.