Southwest says new fare will appeal to small and midsize businesses

Southwest had a net income of $68 million in the fourth quarter. Southwest Airlines.

Southwest's new fare product will bridge the gap between its cheapest fares and its Anytime mid-tier product.

The product will be added around the middle of the year according to Andrew Watterson. Watterson said the product will appeal to small- and medium-size businesses, but he and other Southwest executives shied away from providing further details.

Incoming CEO Bob Jordan said it was too early to give away what the fare product looked like. Jordan will take over the top post on February 1 after Gary Kelly retires.

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Two free checked bags are included in the fares. Change fees are not charged and ticket holders who cancel travel get a flight credit that is good for a year. Southwest has no plans to change what they offer.

Free same-day flight changes and free same-day standby are included in the perks of the next category, Anytime. The flyers that earn the most points per dollar spent are Anytime flyers and Wanna Get Away flyers.

Watterson said the new fare category will be between the two.

Federal aid propels Southwest to 2021 profit

Southwest had net income of $68 million in the fourth quarter. According to the investment website Seeking Alpha, the carrier's operating revenue of $5.05 billion beat analyst expectations by $60 million.

Despite a $30 million impact from the Covid-19 omicron variant in December, the airline turned a profit.

Southwest had a net income of almost $1 billion for the year.

Excluding the federal aid and other smaller items, Southwest would have posted a loss for the year. Southwest expects to return to profitability in March, with profits through the rest of the year.

Southwest's previous plan was for it to fly about the same amount of capacity in 2020 as it did in 2019.