On Thursday CEO of Southwest Airlines Company that doesn’t collect payments for baggage announced that it was not inconceivable that they would be exploring other opportunities of making extras.

According to Southwest, the company suffered only a small third-quarter loss and they didn’t expect a decline in business travel. The income of all airlines has been affected by the vanishing business traveler phenomenon. These losses have been tempered by introducing fees for new ancillary services.

Gary Kelly, Southwest’s chairman, president, and CEO considered that except baggage fees there are other additional revenue opportunities that can be made use of. He is convinced that such frequent flier program as “Rapid reward” would change the situation in many airline companies.

Gary Kelly said that Southwest Airlines Company would rather look for more opportunities to offer a wider range of services to customers so that they would have a wider selection of options to spend more money with the company. For that reason the frequent-flier program suited their strategy.

Earlier it was noted that Southwest started to apply new tariffs in cases when children fly alone and pets travel in the cabin, the latter was prohibited before. If compare price tickets of Southwest and other airlines one can say that this year prices are lower than a year ago. Also due to discounts planes were full despite the fact that many passenger were going on their vocations.

It was reported by the company that about 17 percent of passengers paid the full amount of the ticket price which is a decrease against the same period of the last year when it was 24 percent.

In the third quarter Southwest in Dallas lost $16 million. Last year Southwest lost $120 million during the same period.

As traffic rose 4.7 percent for the quarter, some routes of Southwest became unprofitable and were retrenched, this decreased the capacity by 5.8 percent for the quarter. It was calculated that the cost of flying one person one mile became much higher, i.e. it rose 6.6 percent without factoring in the fuel from a year ago. According to Southwest the trend would continue to rise as the company was cutting fourth-quarter capacity by 8 percent.

Overall, the airline capacity this year is expected to decrease by about 5 percent as compared with the last year.

Original Source: http://finance.yahoo.com/news/Southwest-chases-other-addons-apf-1979370124.html?x=0&.v=14