Airlines Seek to Increase Ancillary Fees as Business Improves

According to The Houston Chronicle, domestic airline carriers in the United States have begun to increase fees and add to a menu of charges for services they once provided free of charge.

After fare cuts and reduced capacity when business travelers flew less frequently during the recession, the major domestic carriers in the United States are flying aircraft with increasingly fuller passenger loads and charging more for airline tickets.

“Business travel, a major source of revenue, is recovering and most airlines are expecting big boosts in passenger revenue this summer,” according to The Houston Chronicle.

As an example, American Airlines reported $585 million in revenue from ancillary fees for such products and services as checked-bag fees and onboard food sales during the first quarter of 2010, which is an increase of 4.8 percent from the same period last year.

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