Southwest Airlines has been a favorite of this blog over the years because of the companyís intelligent approach to business, often while running counter to the prevailing airline industry ìwisdom.î

Thus, as other airlines discourage customers from checking baggage by charging baggage fees, Southwest encourages customers to check baggage by not charging any such fees. The reason? Because, as Eric Joiner explains, it helps Southwest make money:

Southwest Airlines flies a network within the United States that uses basically one airplane. The Boeing 737. For this reason, baggage capacity is fairly consistent with passenger load. Also anyone making a connection is likely to make a connection to another SWA 737, so baggage load factor remains fairly consistent across the network. This has major advantages.

By inspiring customers to check bags, aircraft can be loaded and unloaded much faster than if passengers carry bags onto the main deck and put them in the overhead bin. Anyone who has been on a fully loaded jet recently knows it can take 15-20 minutes just to get the passengers off the plane. The bigger the jet, the longer this takes. Time spent on the ground means time not in the air. Airlines only make money when the jet is flying. By encouraging passengers to check bags and by operating a homogeneous network, SWA can turn flights faster and thus create more profit for the airline.  

What you are actually witnessing is an extension of Southwestís fuel strategy. SWA has always done a brilliant job of fuel cost hedging.  That is buying futures in jet fuel against probable market cost at time of consumption.  Turning aircraft faster means more revenue for the fuel already purchased. Consider this a post hedge leverage on the gas in the tank.

Isnít it interesting that Congress periodically attempts to stifle precisely this type of innovative wealth and job creation?