FlyerTalk Forums - View Single Post - WSJ: despite ad campaign, WN discovers it likes fees
Old May 31, 2009 | 10:33 am
  #14  
SW High
 
Join Date: Jan 2008
Programs: wn-cp,
Posts: 105
Originally Posted by MikeMpls
What kind of passenger influx does one expect when economic conditions are down, down, down? These are the changes in April loads from the previous year:
United -10.5
Delta -7.7 (inc. all regionals, apparently even NW)
Alaska -5.9 (excludes Horizon)
American -4.7
US Airways -3.0
JetBlue -2.7
Continental -2.3
AirTran +0.3
Southwest +4.1
Southwest seems to be holding its own. The two airlines that are gouging everyone with fees are doing the worst.
There is gouging and then there is GOUGING. The others are brutal in this respect. I would think "selective gouging" is the key. Thanks to the LCC's for doing the grunt work by taking the ill will and getting the flying public to accept (grudgingly) the unbundled fees, WN can now choose what fees to add generating the most revenue with the least negative effect.

Watching the previous discussions, the no change fees and everything associated with this policy seems to be the inalienable right for the WN customer (especially for the higher paying business PAX). So this must be maintained. Paying to fly Spot or an unaccompanied underage child doesn't matter to most but also doesn't seem to be much of a revenue generator.

I keep coming back to the greatest revenue producer (other than raising fares) as being the bag charge. From my very unscientific playing with numbers, this fee would generate about three million dollars a day. It would have taken less than a week to wipe out the first quarter's 20M loss and could add one billion to the yearly totals without an appreciable increase in costs. It also could be tolerated more by the business traveler that does not check bags (elites might be made exempt as on other carriers). How many fare increases would be needed to generate this added profit?
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