While other airlines are trying to gain additional revenue by charging passengers for their bags, southwest continues to offer no charge for traveling luggage. They belive that continuing to allow bags to fly for free will be an incenvtive for travelers to fly with them. This has allowed them to reduce their capacity and grow in passengers. Southwest is confident their strategy will ensure larger profits.

And a recent report analyzing the baggage-fee bonanza suggests that while Southwest might be forgoing hundreds of millions of dollars in immediate cash, the low-cost carrier’s strategy promises to pay off in the long run as fed-up passengers make the switch to avoid paying the extra baggage charges.

Source: Travel Weekly