Top airlines made billions of dollars last year from onerous baggage fees that travelers hate.
The world’s top 20 airlines make $33.3 billion in revenue from carry-on baggage fees, checked baggage price hikes and overweight suitcase fines, new report reveals became.
The dollar value will increase by 15% from $29 billion in 2022 and account for approximately 4.1% of global airline revenue in 2023. According to research From airline consulting firm IdeaWorksCompany and car rental service CarTrawler.
According to the analysis, revenue sources are primarily derived directly from the airline’s customers through three means: checked baggage fees in the aircraft hold, oversized carry-on baggage fees, and overweight or oversized baggage fees.
Gone are the days when airline tickets included free checked baggage and, in some cases, free carry-on baggage. Some low-priced tickets only include a free personal item, such as a handbag or small backpack.
Most airlines have started charging checked and/or carry-on items to “basic economy” ticket holders who pay the cheapest fares available.
The exception is Asia, where airlines such as Air China, Korean Air, and Qantas include baggage with the ticket purchase, regardless of fare or distance.
According to the study, airlines first introduced baggage fees as an “economic necessity” during the 2007 and 2008 oil crisis, when fuel prices rose dramatically.
Within months, major U.S. companies went from charging two checked bags per ticket to charging for the first checked bag.
From there, the amount of fees and their prevalence increased rapidly over the years.
Just this month, JetBlue Airways (not included in the analysis) sparked outrage by secretly increasing the price of checked bags, with Teeoff passengers calling the despicable act a greedy money grab. is.
The New York-based airline currently charges travelers $45 for the first standard-sized bag checked within 24 hours of departure and $60 for the second bag. Check out for more than 2 days and save $10 per checkout.
Instead of making a big announcement about the change, the airline quietly updated the “baggage information” section of its website to note in fine print that the price increase went into effect on February 1st.
This only further angered customers who took to social media to complain.
“Increasing inflation and greed,” someone named Yau wrote to X.
The study included four U.S. airlines among the world’s top airlines, not including low-cost carriers.
Baggage fees are just a portion of the $118 billion in so-called “junk” or ancillary fees that airlines will collect in 2023.
Seat reservation fees, which have become increasingly common in recent years, also form a large part of the revenue stream.
The Biden administration has vowed to crack down on “junk fees” to provide travelers with more transparent pricing when booking airline tickets.
“The Department of Transportation is taking action against aviation junk fees that drive up prices for American families,” a Department of Transportation spokesperson told the Post in November.
“For example, we are working to ban junk fees on family seats so parents don’t have to pay extra just to sit with their children when they fly.”
U.S. travelers collected more than $6.8 billion in baggage fees in 2022, according to the Department of Transportation.
Just two years ago, U.S. taxpayer money was used to provide a $54 billion lifeline to major U.S. airlines hit hard by COVID-19 travel bans and restrictions. Ta.
