$769 Million in Baggage Fee Revenue for Airlines for First Three Months of 2010

According to USA Today, the United States Department of Transportation announced that revenues for airlines from baggage fees increased 33% in the first three months of 2010 when compared to 2009, to the tune of $769 million as compared to $578 million.

For those who do not want to do the math, that adds up to an increase in revenue for airlines of $191 million solely for baggage fees.

Additionally, airlines collected $554 million in fees to change reservations and $534 million from ancillary services such as sales of frequent flier program miles and fees to transport pets.

The first-quarter income of $1.86 billion from all ancillary sources does not include the sale of food and drinks, pillows, blankets and on-flight entertainment or fees charged for seat assignments.

Are passengers increasingly willing to pay certain fees charged by airlines? With revenues such as what was already stated, it is increasingly clear that airline fees will not disappear anytime soon, despite their lack of popularity with travelers, to say the least.

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3 responses to “$769 Million in Baggage Fee Revenue for Airlines for First Three Months of 2010

  1. I drive everywhere I possibly can because I am sick of being legally robbed by the airlines. How long are we going to take this? Hit them where it hurts if you possibly can. Now is the time for an airline to advertise “NO FEES AT ALL…and all done with a smile because we LIKE our customers!”. Watch us fill up those flights! They’ll be so popular we’ll be on a waiting list. Truly.

  2. Christopher Muise

    For many years, airlines were their worst enemies. When demand jumped, they put bigger planes in the sky and hired more employees. Problem is, as my old colleague once said, everyone has a winter. So excess employees and big planes became an albatross. By down-gauging planes, especially of course domestically, airlines have been able find much better balance. This has not boded well for passengers as smaller planes mean less margin for error (cancellations and delays can take much longer to sort out because there just aren’t as many seats available) and more demand for those available seats. Our hope is that TruPrice can help you make better informed decisions about which airlines you can fly. Do a side-by-side comparison and you’ll see that some of the major airlines have fees twice those of low cost carriers. Don’t give up on air travel, vote with your wallet and give your business to the airlines with the lower fees.

  3. I hear what you’re saying Christopher but I’m just so fed up with the whole business! Security, shoes off, body searches at times, delays, uncaring “customer service” representatives, treated like cattle, being held hostage on the tarmac and now FEES!!!!! Frankly, it’s just no fun anymore. I’ll fly again when the airline industry treats me as though they really appreciate my business instead of an easy mark.

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