Southwest CEO Says No Baggage Fees

(RTTNews) - Southwest Airlines (LUV) has decided that it will continue to transport customers' baggage for free despite mounting pressure from investors to charge for baggage check-ins in order to generate more revenues.

"We have a unique and beloved position in the industry with this approach and we would be foolish to squander it, so no thought whatsoever on charging bags," noted CEO Gary Kelly on the post-earnings conference call.

According to reports, bag fees have generated billions of dollars for other airlines, which could really help Southwest as it continues to wage a pricing war with some regional airlines.

The nation's top 13 airlines collected $3.8 billion in bag fees during 2015, plus another $3 billion in charges paid by passengers who change or cancel reservations, according to the U.S. Department of Transportation.

"The fare environment is very competitive and we have seen an increase in competitor seats in our markets that is fairly significant year-over-year, and so that obviously has an impact on us," Kelly added.

Southwest is the only major airline in the country that does not charge its customers to check their first two bags or to change flight reservations.