Right now, customers who buy the cheapest Southwest tickets get a flight credit they must use within 12 months if they cancel the trip, while only those who buy pricier tiers of fares can get a refund. Executives said the airline’s new offering, its first new fare type since 2007, won’t take any benefits away from its lowest-tier tickets. The new fare will likely go on sale in the coming months, and Southwest hasn’t said how much more it will cost. Southwest said in December that it was planning to start offering a new type of fare that, along with other initiatives like a modernized revenue-management system, would bring in an additional $1.5 billion in pretax earnings next year. JETBLUE, AMERICAN, SOUTHWEST PILOTS SUE CDC OVER FEDERAL MASK MANDATE
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The airline allows people to check up to two bags free and doesn’t charge change fees-a policy several major carriers emulated for the first time during the pandemic as they looked for ways to spur booking among anxious travelers.
Southwest has pursued a delicate balance in finding ways to bring in more revenue without taking away the perks that have made it popular with customers in the first place. They have bet that this strategy will help them appeal both to bargain hunters and big spenders and to compete with discount carriers that offer cheap base prices with layers of added fees. (Photo by Alex Wong/Getty Images) (Alex Wong/Getty Images / Getty Images) A Southwest Airlines employee helps a passenger to check in at a counter at Ronald Reagan Washington National Airport.
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