If you feel like you are paying a ton of fees when you fly, it’s not just your imagination playing tricks on you. According to the Boston Globe, a government report stated that $3.4 billion was collected by airlines in 2010 – for baggage fees alone! This was a 24% increase from fees collected in 2009.
For business travelers, these fees add up fast. So it is important to know which are the worst and which are the best when it comes to airline fees. In their defense, analysts have determined that these fees are the only thing keeping some airlines profitable. But it doesn’t make me grumble any less when I have to dig in my wallet for $50 each way for one checked bag.
Southwest offers the best deal with two free bags and JetBlue lets passengers check one bag for free. But most airlines are typically charging $50 for the first piece of checked luggage and $70 for the second. Delta reportedly raked in the most profit from bag fees – a whopping $952 million – followed closely by the combined revenue of United and Continental of just under $655 million. According to the Department of Transportation, American made $580 million and US Airways made $513 million.
Airlines blame the rising cost of jet fuel as the reason for charging the excessive fees. The cost of fuel is now up 37% from where it was this time last year. But baggage fees aren’t the only way they’re making up the difference. They are charging more for things like water bottles, extra leg room, and booking in advance.
However, starting August 23rd, new rules from the Department of Transportation will require airlines to “prominently disclose all potential fees” on their websites before a ticket is purchased. This will avoid the shock at the check in counter that happens all too often for both pleasure and business travelers alike. Until then, the next time you are traveling to your corporate housing San Diego suite for a business trip, be sure to do all your research on the potential fees before you buy that ticket!
(image courtesy of MSN.com)
