baggage fees

Airline Profits


Travel costs are stacking up but that doesn’t mean airlines are flying off with the extra cash profit.

This year $746 billion is expected to be spent on air travel. And with the cost of a ticket, baggage fees and the upcoming summer season airlines should be raking it in right? Wrong. According to the International Air Transport Association when all is said and done airlines will take home a profit of just 5.4% per passenger. And while that number seems low; it's an improvement over the 1.4% it brought home a couple years ago.

Experts say there's something wrong with an industry where the providers of the service are embarrassed to reveal their profit. They say the high cost of jet fuel is mainly to blame and if that number would drop airlines and the passengers would benefit.  read more »

Sky High Fees


2012 was a profitable year for airlines... and it's all thanks to you and your over packing.

Last year U.S. based airlines brought in $6 billion thanks to baggage and reservation change fees. That marks the highest amount since the fees became part of your travel plans about five years ago. And while that number is good news for the airline industry it means passengers aren't going to see a break anytime soon.

The first baggage fees were introduced in 2008 and have climbed since then. Now airlines typically charge $25 each way for the first checked bag and $35 for the second bag. Plus you have to toss a few extra bucks their way for overweight or oversize bags.  read more »

Packing Light


Feel like the airlines are flying off with your hard earned money? You could be right.

You may hate arriving at the airline ticket counter only to find out your luggage isn’t going to land safely unless you shell out more money. But the airlines love it; in fact some say those extra fees are the only revenue they’re bringing in.

Last year the airlines made $3.4 billion in baggage fees. This is up 29% from last year. A small consolation for airlines when you consider the price of jet fuel has climbed 39% since last year. And as the cost for them to fly rises; so does the cost for your seat.  read more »

Billions in Baggage Fees


Baggage fees may be miserable for passengers but airlines have billions of reasons to love them.

According to the Bureau of Transportation statistics airlines raked in over $2.5 billion last year thanks to baggage fees. This is up 22.5% percent from the year before. And it looks like airlines will continue to profit from these fees. Michael Boyd is the president of an aviation consulting firm and says people are paying the fees and as long as passengers don’t revolt, the fees will remain in place.  read more »