LIVE MARKET COVERAGE

Baggage fees boost domestic airlines

The airline industry continues to benefit from baggage fee revenue. According to the Bureau of Transportation Statistics, domestic US airlines saw a 22.5 percent year-over-year increase in revenue from baggage fees. In the third quarter alone, domestic carriers brought in $906 million.

Topping the list, Delta generated $259.4 million in baggage fees during the latest quarter. Meanwhile, American Airlines received $151.1 million in fees incurred from checked bags. US Airways took third place, earning $131.8 million from baggage charges in the third quarter.

The airline industry continues to benefit from baggage fee revenue. According to the Bureau of Transportation Statistics, domestic US airlines saw a 22.5 percent year-over-year increase in revenue from baggage fees. In the third quarter alone, domestic carriers brought in $906 million.

Topping the list, Delta generated $259.4 million in baggage fees during the latest quarter. Meanwhile, American Airlines received $151.1 million in fees incurred from checked bags. US Airways took third place, earning $131.8 million from baggage charges in the third quarter.

Another source of revenue for domestic airlines include fees for changes to existing ticket reservations. Through the third quarter of this year, Delta has brought in over $1.26 billion through the combination of baggage and change fees. The BTS figures show that domestic airlines collected over $4.3 billion through these fees, in 2010.

There are additional charges that may appear minimal, but add up for the airlines. In-flight sales of movies, food and beverage items, along with blankets and pillows, also provide a significant boost for the major airlines. Unfortunately, the BTS statistics only categorizes these charges into baggage fees and change fees, with these additional sales bundled together into one separate category. The category does not provide a distinction of individual charges, so revenue from entertainment and foodstuffs cannot be differentiated.

As American travelers prepare to take flight during the upcoming holiday season, a thorough review of airline fees may be prudent. While Southwest airlines does not charge additional fees to change a ticket reservation or check in fewer than two pieces of luggage, some airlines charge customers to check in carry-on items.

Comments:

Comments are disabled for this item

Sign up for our daily newsletter

Blogger

Marlon Laing

Producer



Your Ad Here