Airlines' Bag Fees Earn Less, But Lots of Other Charges Chip In

Image: Airlines' Bag Fees Earn Less, But Lots of Other Charges Chip In

Tuesday, 06 May 2014 08:10 AM

By Michael Mullins

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
Airlines' bag fees earned less revenue in 2013 compared to the year before but the lost money is being made up by nickel and diming fliers with a bunch of other fees.

According to data released by the U.S. Department of Transportation, in 2013, the nation's leading 16 airlines earned $3.35 billion from bag fees, a 4 percent drop from 2012.

Urgent: Do You Approve Or Disapprove of President Obama's Job Performance? Vote Now in Urgent Poll

Despite the revenue decline, airlines turned a significant profit in the last quarter of 2014, earning $7.3 billion. Over the same period in 2012, the same 16 major airlines had a loss of $188 million, The Associated Press reported.

So how are airlines able to make greater profits considering declining bag fees? By charging customers a slew of other fees, like changing ticket reservations and making their flight more comfortable with preferred seating and early-boarding privileges. In 2013 alone, airlines brought in $2.81 billion from ticket reservation changes, a 10 percent increase from 2012.

Aviation consultant and former American Airlines executive Robert Mann told the AP that he believes airlines are intentionally making basic economy uncomfortable to pressure customers to pay extra for a better seat, one that has more legroom or boards earlier.

As for why there has been a decline in bag fees, Mann said, "You have more people exempt (from the fee) because they use the right credit card or they get status in the airline's loyalty program."

According to the former airline executive, most people who get "whacked by the bag fee" are not frequent fliers, who he believes are increasingly relying on car, bus and train travel as opposed to planes to save money.

Though there was an overall decline in bag fee revenue, Delta Air Lines was the leader of the pack, raising $833 million in 2013 from bag fees. Delta was followed by United, which took in $625 million, then US Airways, which raised $528 million, and American Airlines which had $506 million in bag fee revenue.

Additionally, Delta also led in ticket reservation change fees with $840 million in 2013, the AP noted.

The 2013 bag fee decrease is seen by many as a leveling off of revenue in recent years, considering that since 2008, when the financially strapped American Airlines first expanded fees to checking a regular bag or two, airlines overall have seen an uninterrupted rise in bag fee revenue until 2013, in some cases doubling from one year to the next.

Urgent: Assess Your Heart Attack Risk in Minutes. Click Here.

Related Stories:

© 2014 Newsmax. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Send me more news as it happens.
 
 
Get me on The Wire
Send me more news as it happens.
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
You May Also Like

Wiley Bridgeman, Ricky Jackson Freed Decades After Wrongful Convictions

Friday, 21 Nov 2014 20:23 PM

Wiley Bridgeman, 60, and Ricky Jackson, 57, were freed Friday after being imprisoned for nearly four decades for a 1975  . . .

Akai Gurley Accidentally Shot and Killed by NYPD Rookie Officer

Friday, 21 Nov 2014 20:04 PM

Unarmed 28-year-old Akai Gurley was accidentally shot dead by a rookie police officer in Brooklyn who was walking with h . . .

Jimmy Kimmel: Mean Tweets About Celebs Read Aloud by Said Celebs (Video)

Friday, 21 Nov 2014 18:57 PM

"Jimmy Kimmel Live" on Thursday brought back the popular, laugh-out-loud Mean Tweets, where celebrities read the cruel t . . .

Top Stories

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved