6 billion in fees last year
airlines collected more than $6 billion in baggage and reservation change fees from passengers last year the highest amount since the fees became common five years ago.
Passengers shouldn expect a break anytime soon,
coach bags. Those fees along with extra charges for boarding early or picking prime seats have helped return the industry to profitability,
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Airlines started charging for a first checked suitcase in 2008 and the fees have climbed since. Airlines typically charge $25 each way for the first checked bag,
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The nation 15 largest carriers collected a combined $3.5 billion in bag fees in 2012,
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The airlines took in $159.5 in revenue last year and had expenses of $153.6 billion, according to the government. That 3.7 percent profit margin comes entirely from the baggage and change fees.
Delta Air Lines once again took in the most fees $865.9 million from baggage alone but it also carried more passengers than any other airline.
Delta collected $7.44 per passenger about average for the industry. Low cost carrier Spirit Airlines collected the most,
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The government only requires the airlines to report revenue from baggage and change fees,
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Passengers can expect to pay even more this summer,
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American Airlines,
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Even Southwest Airlines, which promotes its lack of change fees and fly free policy, recently announced a new policy on no shows. Passengers who buy the cheapest tickets will have to cancel a reservation before departure; otherwise they won be able to apply credit from the missed flight toward a later trip.
Many fees were first introduced to allow airlines to offset rising fuel costs. In 2008, jet fuel spiked 46 percent to an average $3.06 per gallon as the price of oil hit an all time high.
Airfares have climbed in recent years but jet fuel remains costly in 2012, the airlines paid an average of $2.96 a gallon. Passengers have shown reluctance to book tickets if the base fare is too high, hence the introduction of more fees collectively referred to in the industry as ancillary revenue.
Besides baggage and change fees,
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But the airlines are being aggressive about expanding those fees. United recently said in an internal newsletter that it hopes to collect $19.29 in average ancillary revenue per passenger by the end of 2013,
montblanc, up 9.1 percent from the amount it collected last year. JetBlue, which doesn charge for the first checked bag, took in a record $22 per passenger in other fees in the first quarter,
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Airlines are also increasing certain fees depending on demand,
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Thanks to a computer upgrade, United can now charge passengers different prices to upgrade to an Economy Plus seat, which has more legroom,
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