Southwest CEO Says Baggage Fees Are Pacing Toward $1 Billion in Annual Profit
Despite early concerns, Southwest is learning what other airlines had already figured out: Baggage fees are big business.
Meghna Maharishi is Skift’s Airline Reporter, where she covers everything from loyalty programs to policy-making in Washington, D.C. She previously covered the airline industry at The Points Guy, worked on the investigative desk at CNBC, and did data visualization at CNN Politics. Send tips to Meghna on Signal at mmaharishi.61.
American Airlines CEO on AI Pricing After Delta Backlash: ‘I Don’t Think It’s Appropriate’
Ever since Delta mentioned it is using AI to set prices on domestic flights, the backlash against the carrier has grown.
American Airlines Lowers 2025 Outlook
American, like many other U.S. airlines, is lowering its profit forecast for the year. However, the carrier noted that domestic demand was starting to strengthen.
Alaska Airlines Gets Boost From Premium, Expects Hit From IT Outage
Alaska’s second quarter turned out better than previously expected as revenue from premium seats and loyalty continued to grow.
Southwest Says Profit Fell, But New Baggage Fees Are Paying Off
While Southwest’s profit and revenue fell during the second quarter, the airline noted that domestic leisure demand was starting to stabilize.
Delta’s Use of AI for Setting Fares Sparks Concern in Washington
Some are concerned that Delta’s use of AI could lead some customers to pay more airfares given the pricing system’s individualized approach.
Southwest Sets Date for Assigned Seating, Launches New Boarding Process
The moves come as Southwest has been making massive changes to its business model that include baggage fees and premium seats.
‘Uncertainty Has Declined’: United Sees Demand Rebound
After seeing softening demand for the first half of the year, United executives now believe that the economy is stabilizing, leading to higher demand.
United Lowers Profit Forecast Despite Less Economic and Geopolitical Uncertainty
There were some bright spots in the report, including higher revenue from premium passengers. But the Newark Airport issues still linger and the focus will be on the overall drop in the earnings outlook.
Avelo to Shut Down West Coast Base, Says ICE-Flights Backlash Not a Factor
Avelo said leaving Burbank was unrelated to its controversial contract with ICE. Backlash against the contract nor the contract itself has impacted Avelo’s business, the carrier said.