Airline Fees L

Airlines Made A Whopping $27B off The Extra Fees You Paid Them

By Mirela Necsutu, Mon, Dec 23, 2013

Airlines siphoned $27.1 billion in extra charges, such as baggage fees and seat upgrades, in 2012 alone – that’s up 20% from 2011, according to a recent report by the IdeaWorks Company.

 

Courtesy of Skift.com, airlines are ranked below by 2013 baggage and change fee revenue for Q1-Q3:

 

Rank Airline Baggage Fees ($) Change Fees ($) Total Fees ($)
1 Delta 635,301,000 636,926,000 1,272,227,000
2 United 471,450,000 572,997,000 1,044,447,000
3 American 382,883,000 400,955,000 783,838,000
4 US Airways 400,340,000 249,538,000 649,878,000
5 Spirit 158,728,000 23,943,000 182,671,000
6 JetBlue 55,378,000 107,766,000 163,144,000
7 Alaska 73,500,000 67,976,000 141,476,000
8 Southwest 117,638,000 22,992,000 140,630,000
9 Allegiant 95,589,000 7,052,000 102,641,000
10 Virgin America 43,911,000 24,305,000 68,216,000
11 Hawaiian 53,431,000 13,561,000 66,992,000
12 Frontier 47,057,000 9,552,000 56,609,000
13 Sun Country 12,343,000 1,436,000 13,779,000
14 Mesa 1,980,000 n/a 1,980
15 Island Air Hawaii 1,486,000 251,000 1,737,000
16 American Eagle 12,000 n/a 12
  All 2,551,027,000 2,139,250,000 4,688,286,992



More airlines have been hitting passengers with these extra charges since 2008, when rising fuel costs forced carriers to look for other ways to make money. Although it’s typically been the low-cost airlines that have had the highest fees, the IdeaWorks report says that more major European airlines are using extra charges to help their bottom lines.

“Statistics help tell the ancillary revenue story, and every year key numbers are getting bigger,” the study says. “The most aggressive airlines easily generate more than 20% of their revenues from a la carte fees.”

Those “most aggressive” airlines rake in about $30 per passenger, says the study.

So who were the biggest culprits? United Airlines led all carriers in fee revenue with $5.4 billion, followed by Delta Air Lines with $2.6 billion and American with $2 billion. Spirit Airlines took in 38.5% of its revenue from extra fees — the most of any carrier –followed by Allegiant Air with 30% and Britain’s Jet2.com with 27%.

If you’re looking for a few ways to cut down on how much you pay in extra airline charges, this article about avoiding baggage fees might help.

 

Have an opinion about this story?  Post your thoughts below or take it to Twitter and follow us.

comments powered by Disqus Back

CONTACT US

Mon-Fri
6:00 AM - 5:00 PM PST
Sat
8:00 AM - 1:00 PM PST
Sun and national holidays
closed
TEL:
1 (626) 256-1249
FAX:
1 (626) 256-1539
CST:
2065177-40
FareBoom.com Bt-Store.com
18 Years of Excellence
I'm a shared tooltip!