But Bags Will Still Fly Free At Least Through 2014

Southwest Airlines CEO Gary Kelly (pictured) says that the airline may re-evaluate its "bags fly free" policy in the future, but for now, the airline will remain one of only two domestic carriers that do not charge a baggage fee on domestic flights.

Kelly's remarks came in a conference call to report earnings Thursday, according to a report in the Wall Street Journal. He said that for now, the ability to check up to two bags for free is still bringing business to the airline, but that in the future, if the flying public comes to better understand and possibly even prefer an ala-carte approach to airline fees "we'd be crazy not to provide our customers with what they want."

Analysts say that by carrying bags for free, Southwest is missing out on a significant revenue source that could add up to tens of millions of dollars every year. Wolfe Research airline analyst Huntey Keay told the Wall Street Journal that "the competitive landscape has changed" and that charging for bags makes sense in the current environment.

Bag fees are gaining wider acceptance, according to a recent survey by J.D. Powers & Associates, but still fewer than half of all passengers said that the fees are "reasonable."

Southwest and JetBlue are the only U.S. carriers that still carry checked baggage for free on domestic flights.

FMI: www.southwest.com