The Benefits to Airlines of Small Fees

During the period of soaring fuel prices, airlines were removing amenities and looking at creative ways to generate revenue. It was during this time that various airlines instituted a fee for checked luggage. This has proved to be a reliable way to create revenue:

“American Airlines and US Airways led U.S. carriers in collecting a record amount in bag fees in 2008, as both airlines began charging per-bag fees for all checked luggage.

Industrywide collections more than doubled, to $1.1 billion, from 2007, when the fees were levied chiefly on fliers who had heavy baggage or checked more than two pieces, the U.S. Transportation Department said…”

link: Airline bag fees net $1.1 billion

Now the airlines justify the charges because air travel is declining because of the poor economy. One has the distinct feeling that there will always be a reason to maintain, and perhaps increase, the luggage fees. If there is a potential revenue of billions of dollars, do you think that the airlines would roll-back policy and forfeit that income? It is not likely.

Catherine Forsythe