• McClatchy/Tribune, Thursday, September 17, 2009 10:45 AM

Southwest Airline CEO Gary Kelly says that "it feels like our business is picking up some," and he believes that the carrier has weathered the recession without resorting to some of the add-on charges that most other carriers have instituted (although it has added pet and early-boarding fees).

In a new TV commercial, Southwest ramp workers point to bags that fly free on the airline. But while it's a reminder to customers that Southwest does not charge for the first two checked bags, writes Andrea Ahles, shareholders may see a lost revenue opportunity.

"I don't agree with Wall Street that Southwest is leaving revenue on the table," says Kelly. "We are getting more revenue by not nickel-and-diming the customer, especially with bag fees." Still, analysts expect Southwest to begin offering in-flight Wi-Fi service for a fee next year and possibly add a fee for a second checked bag.

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