Ancillary Fees are Not Enough: Now Airfares are Increasing

Remember when as few as two years ago, airlines were struggling to survive with a spate of factors confronting their profitability — or, more accurately, a lack thereof — including record-high fuel prices?

Today, with the exception of American Airlines, domestic carriers in the United States are profitable once again due to a variety of factors, including lower fuel prices, diminished capacity, and ancillary fees on which they are not taxed.

In fact, the ancillary fee model of doing business has been so phenomenally successful that The Wall Street Journal reports that ancillary fees are here to stay and will not disappear anytime soon.


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