Luggage charges are not likely going away

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  • Mon, Jul 29, 2013 - 09:31am

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    SPAM_seriousme

    SPAM_seriousme

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    Luggage charges are not likely going away

Airline charges like baggage fees are a hassle. They only make the already substantial pain of air travel worse. However, they are not likely going away, as it is tougher for airlines to make a living these days. How often have you expected more info on ways to get a fast payday loans online, and resorted to a web search on emergency payday cash loans? Look no further, all of the details you need is at MatchFinancial.com!

Fees getting sky high

Unfortunately for any person who travels by air currently, most airlines charge a fee to check bags. In some cases, passengers get charged to stow bags in the overhead compartment. For example, according to Fox Business, Allegiant Airlines charges $35 to stow a carry-on bag in the overhead compartment. Spirit Airlines charges $45.

Spirit has also, according to the Washington Post, instituted a new fee for not spending money on an overhead bin bag ahead of boarding. If Spirit Airline passengers pay for using an overhead bin at an airport kiosk or at the ticket counter, the fee stays at $45. However, if they neglect to do so until they are at the boarding gate, the fee rises to $100.

Southwest Airlines does not charge any luggage fees or rebooking charges, which is why it may be on the top of the budget airlines, according to the Seattle Times.

Why are there extra fees?

The cause of airline fees is that air travel is not a very profitable business. Fuel costs and continually fluctuating amounts of travel make it difficult to consistently make enough to cover the bottom line.

Also, airlines undercharge on tickets. According to the Herald Times Reporter, a newspaper in Manitowoc, Wisconsin, air travel industry trade group Airlines for America estimates the typical round trip fare cost carriers $523.98 per passenger last year, using data from the Agency of Transportation Statistics. However, the typical passenger paid only $422.50, a $100 discrepancy. However, luggage charges, check-in fees and other ancillary charges brought the average revenue on a round trip fare to $561.60, a profit of less than 10 percent.

All told, the airline industry has lost roughly $36.7 billion in the past decade, according to the Cleveland Plain Dealer. The average profit margin for airlines in 2011, according to the Herald Times Reporter, was 0.3 percent.

Fees never changing

Some statistics show that the airline industry is not being super successful right now. In fact, they only brought in $8 billion from airline charges, according to Bloomberg, in the year ending Sept 30, 2011.

In calendar 2011, according to CBS, all ancillary fees brought in more than $30 billion to the air industry. The core service, flying people to places, doesn't make enough cash. The charges are here to stay and are likely to get worse as airlines continue to struggle.

Sources

Fox Business

Washington Post

Seattle Times

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