Airline Fees

If you think there’s any hope of airline fees going away, think again.

In 2010, U.S. airlines made:

$3.4 billion in baggage fees (up 25% from the previous year.)

$2.7 billion in reservation change fees.

$958 million in net profits

Where do you think those profits came from?  You do the math. 

(Frank II)

Update on June 15, 2011 by Frank@OBOW

Perhaps Conan O’Brian has a better perspective:

Comments

[Andy]

I hope they start charging for overhead bin space soon too, and more than they do for checked luggage. That's the worse bit about it; people trying to carry on their obviously oversized luggage, filling up the bins and making everyone late. Spirit Air had the right idea.

[Smith]

No, that is the wrong idea. Come on--charging for checked luggage, carry on luggage---give me a break. Andy, what needs to happen is to just to set one carry on size rule (45 linear inches) and then make sure people follow it.

[Gary Williams]

The advantage of a la carte pricing is that you only pay for what you use. The disadvantage is that it's harder for third parties to do fare comparisons because the number of permutations is too large. And I think that's what bag fees are really all about: making fare comparisons more difficult. Otherwise, the airlines would have just raised their fares, and we light packers would have continued to absorb the cost of transporting other people's heavier loads.

Whenever possible, I fly Southwest, and not just when my wife has luggage to check. No charge for bags means more space in the overheads. It would be interesting to know whether Southwest is taking enough business away from other carriers to compensate for forgoing baggage fees.

In a way, I don't have a theoretical problem with baggage fees--baggage handling costs something. But has anyone studied whether it costs as much as the airlines are charging to do it?

[Alan B]

"has anyone studied whether it costs as much as the airlines are charging to do it?"

Almost certainly NOT. See current separate thread, regarding the actual incremental cost, related to the price of fuel, for each additional pound carried over variable distance. A $25 bag charge more closely correlates to the airline's overall cost increase related to paying for more than $3/gallon fuel as opposed to $1/gallon. A percentage surcharge related to fuel costs, which are the most volatile part of transportation pricing, would be more open and direct, but would run counter to competitive "marketing." Travelers who use carry-on luggage rather than pay to check most likely are getting subsidized by non-light travelers.

[K-eM]

Here's an idea...and I have no idea if this would work. I know it would certainly require some policing and that could be tricky. I'm not an expert in this by any stretch of the imagination.

What if, when I buy my ticket, I pay for my bag according to how much it weighs? So if I get a ticket for $300, then I can choose my bags to add to that base ticket price. Under 10 lbs is free, 11 to 20 lbs adds $5, 21-40 lbs adds $10, etc.

When you check in, part of the process would definitely have to be someone there weighing your bag. However, maybe people would be less prone to over pack and/or would check their bag since checking would no longer be fee based.

[Rachel O.]

There's no reason an airline shouldn't be able to charge you for checking luggage. Those who choose to check a bag should be the ones who have to pay--those of us who pack to carry on shouldn't have to subsidize the bags of others. And the amount an airline charges you to check a bag doesn't have to depend on how much it costs them to provide the service--they're offering you a service, and you should be a responsible consumer and decide whether or not you're willing to pay for that ADDITIONAL SERVICE. Just because they offered it for free in the past doesn't mean that they're obligated to do so in perpetuity. If you don't like it, don't check a bag, fly Southwest, hop on the train or get in your car. Or sign up for the airline's credit card and get free checked bags, in many instances.

[Megan E.]

Personally, I think they should charge based on weight - 150 lb is free, and up from there. Regardless if it's on your person or in a bag. In addition, they should do a surcharge of $5-10 per bag checked, compared to a carry-on.

Reasons:
1. Even if you carry-on a bag, it can still weigh a TON and can be dangerous to yourself or others (putting it up, taking it down, opening of overhead during flight)

2. As mentioned, checking the bag is a SERVICE - it means you don't have to carry it, and thus the SMALL extra charge for it.

3. Those of us who pack lighter and weigh less wouldn't have to subsidize those who pack 1/2 their body weight and are overweight.

Of course, people would throw a fit that they were being discriminated against - but I still think the idea has merit.

[Gary Williams]

@Megan: I think there is some merit to charging by the pound, biological or not. But as you recognize, that would cause a lot of issues with the less thin among us. And I'm so cheap, I'd be looking up guys I knew who wrestled in college for a list of their tricks for making weight. The problem with luggage by the pound, I imagine, for carry-ons is that people would get their bags weighed and charged, and would then stuff more in after leaving the counter. Re-weighing at checkin would probably seriously slow down aircraft loading.

@Rachel: Your point is well taken, although there is a benefit to light travelers of a no-bag-fee policy. It's kind of like the way tax-supported free mass transit would offer at least some benefit to commuters who continue to drive: everyone who rides is one less car on the road. Similarly, at Southwest light travelers benefit, too, because there is so much less competition for the overhead space.