Southwest Airlines Takes a Tumble as Fuel Costs Soar Southwest Airlines' decision to overhaul its business model in recent years has been a calculated risk.
The introduction of basic economy fares and the elimination of free checked bags were designed to boost revenue, but they also make the airline more vulnerable to rising fuel costs.
The airline's second quarter profit numbers show that this strategy is working so far. A 9% increase in earnings from last year was largely driven by higher fares offsetting the cost of fuel.