Southwest Airlines announces new fees for bags, early check-in Looking to increase revenues amid tough competition, Southwest Airlines announced several fee changes Friday, including higher charges for checking a third bag and for failing to cancel a ticket before missing a flight. The Dallas-based airline, the nation's largest passenger carrier, will continue to charge passengers nothing for their first two checked bags and for changing a flight after buying a ticket. Video chat: Airline workers have gripes too The changes, announced Friday during an investors" conference in New York, are expected to help the airline increase revenue from fees by $300 million annually. The changes are expected to take effect in 2013. The fees for a third bag and for overweight or oversize bags will rise from $50 to $75. The charge for the "early bird" check-in that lets passengers board early increases from $10 to $12.50. The airline has yet to outline the fee for failing to cancel a restricted ticket before missing a flight. Southwest Chief Commercial Officer Bob Jordan said the "no-show" fee will generate revenue and give passengers an incentive to cancel a ticket before missing a flight so that Southwest can resell those empty seats. "So, it's a double win there," he said during the investors" conference. We are still working through the changes but we have made the decision to do it. A questionable way to avoid baggage-check fees United Airlines becomes first U.S. carrier to fly Dreamliner