Southwest's CEO said if the airline had baggage fees at the beginning of the year, they would have led to $1 billion in profit.

In one of the highlights of the quarter, Southwest noted that it "launched bag fees with financial benefit exceeding expectations and no negative operational impact." CEO Bob Jordan noted the implementation of bag fees and a basic economy product was an "exceptional operational rollout.

Southwest Airline's seating policy isn't the only thing that's changing; the airline and Chase announced updates to the Southwest Rapid Rewards credit cards — adding enhanced benefits like pre-flight seat selection and early boarding,