Southwest Introduces New Service Charges

In an effort to beat the economic downturn, Southwest Airlines Co. (LUV - Analyst Report) has introduced a new charge for unaccompanied children and for passengers bringing pets inside the cabin.

The discount carrier said that it will start levying a service fee of $25 each way for minors travelling alone. Southwest also stated that passengers will be allowed to carry small cats and dogs inside the aircraft cabin for a special round-trip charge of $150.

The company also increased the service fee for a third baggage, weighing 51 to 70 pounds, to $50 from the existing $25.

The airline industry has been forced to discover new sources of revenue as travel demand has waned amid the ongoing recession.

Shares of Southwest are trading close to break-even on lower-than-usual volume of approximately 5.2 million, compared to average daily volume of about 7.5 million.

LUV is a Zacks #3 Rank ("Hold") stock.

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