It’s luggage to you, it’s profit or loss for the airlines, per New York Times:
At the same time, passengers are now checking fewer, and lighter, bags to avoid the extra fees for heavy suitcases. As a result, the airlines have not been losing as many bags, and baggage handlers appear to be suffering fewer injuries.
In addition, the airlines now have more space available for cargo, which sells at a higher rate than a checked bag. “Freight makes a significant contribution to the bottom line of passenger airlines,” said Ulrich Ogiermann, chairman of the International Air Cargo Association. The revenue potential “cannot be ignored,” he added.
A baggage report released last month from SITA, an aviation information technology company that studies trends in passenger baggage, found that one in four passengers chose not to check bags last year, compared with one in six in 2008 — the first year virtually all the major airlines imposed the fees.