Airlines Set Bag Fee Record in First Half of Year
NEW YORK (AP) — U.S.
airlines collected more than $1.7 billion in baggage fees during the first half
of the year, the largest amount ever collected in that six-month period.
Delta Air Lines Inc.
once again claimed the title as the airline collecting the most in baggage
fees: nearly $430 million from January through June. The slightly larger United Airlines — part of United Continental Holdings Inc. — followed with
$351 million in bag fees, according to a report from the Bureau of
Transportation statistics released Tuesday.
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, $35 for the
second bag and then various extra amounts for overweight or oversized bags.
The nation's 15
largest carriers collected a combined $932 million in bag fees in the second
quarter, the BTS reported. That's in addition to the $816 million collected in
the first quarter of 2012. The third quarter, which includes the busy leisure
travel months of July and August, is traditionally the highest of the year but
figures aren't expected to be reported by the government until December.
The airlines also
collected an additional $1.3 billion in fees for canceling or changing a
reservation during the first six months of the year.
Without the fees, many
airlines would struggle to remain profitable. The industry turned a $2.3
billion operating profit with a 6-percent profit margin in the second quarter,
according to BTS, up from $228 million, or a 0.7-percent margin, during the
first quarter, a traditionally slow time of year.
Many of these fees
were first introduced to allow airlines to offset rising fuel costs. In 2007,
the airlines paid an average of $2.09 a gallon for jet fuel. The next year,
prices spiked 46 percent to $3.06. During the first seven months of this year,
airlines have paid an average of $2.96 a gallon.
Airfares have climbed
in recent years but not as fast as the cost of fuel. Passengers have shown
reluctance to book tickets if the base fare is too high, hence the introduction
of the fees.
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