Little seems to threaten cheap airplane tickets and cheap vacation packages as much as fees that travelers do not necessarily take into account prior to purchasing travel. Airlines collected $7.8 billion in fees last year. When you consider that the airline industry faced global losses of between $9 to $11 billion in 09, it is easy to see how important ancillary fee income has become to the airlines.
U.S. airlines expect to earn an additional $4 billion in fees this year from new baggage fees. Seat sales fell 22 percent in the third quarter of 09, while luggage fees doubled.
The largest portion of airline fee income was generated by checked luggage. Other airline fees include reservation changes, purchasing tickets over the phone, selecting seats that offer additional legroom, early boarding, and flying standby.
Delta, currently the worlds largest airline, at least until the merger to United and Continental Airlines, collected $1.65 billion in fees, top among U.S. carriers. American came in second in fee income with US Airways third, which says something about US Airways fees since two other airlines (United and Continental) are larger than US Airways.
As to what we can expect going forward, the only sure bet is that airlines will become increasingly creative in adding new fees and/or raising old fees.
Elite frequent fliers and passengers flying first or business class are among the lucky few that usually do not have to pay luggage fees.
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