No-Frills Southwest May Have to Start Charging for Some Frills

  • Airline CEO spurs guessing game with comment on revenue hunt
  • Kelly rules out charging for checked bags or assigned seats

Photographer: Patrick T. Fallon/Bloomberg

Lock
This article is for subscribers only.

Southwest Airlines Co. Chief Executive Officer Gary Kelly piqued investor curiosity recently when he said new ways to generate revenue are “under construction.’’

The discounter barely has a toe in the big pool of money that rivals collect from so-called ancillary fees for, say, food bought on board or preferred seating. And Kelly has ruled out some of the juiciest mainstays at other airlines, such as charges for checked bags, assigned seats and reservation changes.