U.S. airlines collected record $1.6Bn in baggage and change fees during Q1 of 2015.
According to the Associated Press, the U.S. carriers collected a record-breaking $1.6 billion in checked bag and change fees during the first quarter of this year.
June 25, 2015
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That’s an increase of 7.6% over the same time period last year and is the highest first quarter total since the airlines started charging those fees in 2008 — in other words, figures that would make Mr. Burns proud.
That higher number could be partially attributed to the fact that more people chose to fly during the early part of 2015; the Associated Press said that 3.2% more seats were filled during what is traditionally the slowest time of the year for air travel. But the AP also notes that some airlines have increased their fees for checked bags – especially for passengers who have 2 or 3 pieces of luggage – and have forced more passengers to pay the fees by eliminating Free Checked Bag perks for some frequent fliers.
According to statistics from the Bureau of Transportation, U.S. airlines reported an after-tax net profit of $3.1 billion for the first quarter of 2015, which was a massive increase over the 4th quarter of 2014 ($241 million) and an improvement over the first quarter of 2014 ($507 million).
The fee for the first checked bag on the Big Three carriers remains $25, but budget carriers like Spirit and Allegiant can charge up to $100, depending on where and how the passenger’s ticket was booked. JetBlue has announced that it will begin charging for checked bags later in 2015, although it has yet to specify its fee structure. That will leave Southwest as the only domestic carrier that doesn’t see every checked suitcase as a giant dollar sign. Ticket or itinerary change fees can range from $50 to $1,000, depending on the carrier and the destination, but tend to average between $150 and $200. And, again, Southwest is the only carrier that doesn’t charge a fee.
So other than flying Southwest (or JetBlue, for now), how can you avoid checked bag fees? The easiest way is by packing everything into a carry-on bag. That’s easier and less impossible than it sounds, especially if you know what not to take on your next trip. If turning your suit into origami doesn’t sound appealing, there are services like DUFL, which can clean, press and ship your business attire to your destination. The company charges $99 for roundtrip service, but somehow, that’s more satisfying than giving the airlines an extra few bucks. Also, signing up for an airline-branded credit card can also come with perks like one free checked bag. That can also help you more quickly accumulate miles and gain status, which can also save you from paying for your luggage.
Last year, the airlines brought in $3.6 billion in baggage fees and $2.9 billion in change fees, which were increases of 5.7% and 5.3% more than they collected in 2013. This year is already on pace to exceed those numbers.
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