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The Dallas-based carrier, famous for the "bags fly free" policy, is planning to charge a "no show" fee to passengers who fail to cancel a ticket before missing a flight.
The no-show fee would give passengers an incentive to cancel a ticket before departure so that Southwest can resell those empty seats.
"We have made the decision to tighten the flexibility around our most restrictive tickets," Southwest CEO Gary Kelly was quoted as saying by The Dallas Morning News.
The company is looking forward to grow revenue by $1.1 billion to cover rising labor and fuel expenses.