Monday, May 18, 2009

United States Airlines Collect $1.1 BILLION in Extra Baggage Fees in 2008

Bag checking is a dirty industry. There's no two ways about it -- if you're charging your consumer extra cash to bring their stuff with them then you shouldn't sleep at night. But it's not just a dirty industry ... it's also a billion dollar industry.

That's right -- US air carriers pocketed an absolutely obscene $1.1 BILLION in extra baggage fees in the 2008 year.

American Airlines led the way, earning $278 million in extra profit for checked baggage, with US Airways and Delta (not that) close behind at $187.1 and $177.1 million, respectively.

Of course, many economy-minded folks argue that it's wholly necessary for the airlines to charge these baggage fees; after all, they're facing a tough financial situation and need to recoup the losses incurred over the past 12 months.

I'm cool with that -- and to an extent, I don't think luggage charges are bad. My problem is that too often, airlines are charging for "standard" luggage. Southwest, for instance, allows two checked bags. That's "standard." If you're going on a trip for any reasonable length, you need to bags most of the time. Forcing people to pay simply to check reasonable amounts of luggage is just too aggressive for my tastes, even if it's worth a billion dollars.

1 comments:

Unknown said...

The U.S. airline industry lost more than $30 billion in the last decade, mostly due to a weak economy,enormously high and unparalled fuel prices. Baggage fees are necessary ancillary steams that are enabling airlines to continue air service to the hundreds of communities in the U.S. A simple suggestion is pack light, don't check a bag and you will not have to pay the fee. I seldom see the same complaints for the price of concessions at the ball park or movies. The U.S. airlines must return to profitability.