Checked bags mean big money for airlines
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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.
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.
I had two new experiences on a round trip to Chicago a week ago. On the outbound flight, it was announced that the weight and balance of the plane was max'd out so once the overhead storage space was filled, no bags could be gate checked and passengers with bags would be denied boarding. Turns out all the bags fit in the overhead.
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On the return flight, after First Class and Execs boarded, all passengers NOT using overhead boarding were allowed to board before those using overhead boarding. Seemed to work fine!
And they wonder why I purchased an RV. I have not flown in years as I miss the days when you had no hassles, a nice meal and on time flights. Vacations are not worth wasting dealing with the airlines anymore. They can bite me!
 @Starchaser You purchased an RV because you're old (possibly retired) and have time to drive cross country. It's a lot cheaper to use an RV is you have the time, but not very convenient for those that still have to work.
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I flew to Seattle and Austin a few weeks ago. Both flights were on time and the only hassle I had was getting patted down by TSA. A nice meal? That's a stretch. Yes, they used to serve food, but I would consider it average at best. There are so many food choices in airports now (especially Seatac), just buy some food and take it on your flight, or better yet, eat before you fly. Not too difficult.
 @Stock Woodie I never ate on a plane when they did offer food.  I'll bring my own snacks and drinks, not an issue.
My feelings exactly. If airlines don't want my business I'll just be more comfortable and drive. @Starchaser
 @Blindman  @Starchaser I love it, now I love road trips but I am more comfortable getting to my destination in a few hours (Las Vegas or LA) than sitting in a car for 20 hours.  Hawaii is about a 6 hour flight, piece of cake, don't think my boat would be very comfortable and it would probably take about 5 days.  ;-)
Fine. I'll pay for checked luggage. But I want a decent snack in return.
 @skepticaloptimist The snack packs are decent, but they'll cost you $6.
As someone who never checks my luggage in, I love baggage fees. I'd rather have the people who bring two huge suitcases with them pay for the extra fuel needed to transport it. Heck, if it was up to me people would pay for all flights by weight including luggage and the person. traveling.
Bag fees wouldn't be so bad if your luggage were treated well, arrived on time, wasn't pawed through or stolen or routed incorrectly or any of the other things that seem to happen. After having many people I know end up with things missing from their luggage or not arrive...I prefer to have a carry on or simply not travel.  They charge for everything now including service. If you don't pay, you are at the bottom of the heap.
Reminds me of this picture I just saw today with the caption "If a 747 can carry a space shuttle, then I call bull**** on overweight luggage fees."
 @Zoso Only a 747 that's been modified and beefed up to carry that that shuttle
@Zoso Sure it can carry a space shuttle, but that limits the distance of the aircraft versus being empty weighted. Requires a lot more energy to keep in the air loaded versus unloaded.
I donn't understand why anyone fly these days. Between getting anally probed by TSA and treated terribly by airlines in these cattle cars. I would love to fly now. I'm retired and would love to travel a little. But I absolutely refuse to give up my inalienable rights just to fly in these giant turds that Boeing builds.
 @Blindman Not my experience but with gas prices and time constraints driving isn't always a better option.
I went on a vacation to New Mexico a couple of months ago and loved the drive. You get to see so much more than you do flying. But I would love to go overseas but I'm not about to till the TSA is gone. Amazing how over the last 13 years people have just gladly given up their inalienable rights. @oledawg  @Blindman
 @Blindman  @oledawg I never go through the back scatter machines. I always opt out and inevitably get patted down my TSA. If everyone would "opt out", TSA might have to reconsider.
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The TSA is a POOR excuse not to go overseas. Going through security takes about 10 minutes.
 @Blindman Grumpy old man.
The only way the bag fees are going away is if they add them to the price of the ticket. Â Personally I like having the options, cheapest ticket and I'll limit myself to a carry on.
 @oledawg It still is added to the cost of the tickets!!!
 @Too funny! No it's not, I just flew with a group to Vegas, our ticket prices were all the same, they paid extra for their bags, I didn't.
They need to pull the fee off. 1.7 B for baggage fees!! If it costs to much then that third guy standing there needs to find another job. That should even it up a bit. I am surprised that customers pay this fee. It is extortion, basically. 1 bag free any others pay for it....simple.
 @Grumpa Why should they offer it for free? It's obviously a cash cow, so I doubt things will change unless these is some sort of government regulation on pricing.
One thing I don't understand. People are bringing their bags aboard and stowing them there. It's still on the plane just somewhere else. Now we all have to wait for people to put their bags away and pull them out when the plane lands. Why don't they just let everyone bring 1 bag and not charge them for it. The plane would load and unload much faster without people bringing all this crap on the plane.
 @mstipton They have to pay people to "handle" your bag and transport it from gate to gate to claims. Still a racquet.
 @mstipton Putting a bag on the belly of the plane(checking the bag) isn't free for the airlines, it costs more than having a passenger store it in the cabin themselves.  When you check a bag, it passes through many hands, machines, and scanners on the way to the belly of the plane, all of that process costs the airlines money.
 @Landshark  @mstipton Do you really think it costs them anywhere near 3 billion dollars a year? How did they get by before they had these fees?
 @merline  @Landshark  @mstipton The economy was better so more people were flying and the cost of fuel was much much lower. While I don't really like paying the bag fees either, I also understand that any airline is a business that needs to make a profit to stay in existence. Without the fees the other option is to raise ticket prices higher and higher which opens a whole different can of problems. Most airlines have done major restructuring and cut backs to run a better lower cost business but that only goes so far. I figure I'll take the cheaper ticket and only check a bag when I need to, thus having the option. I guess we could all take the extra time and go back to driving everywhere but once again, the cost of gas doesn't make it very easy to do that either does it?
 @merline  @mstipton No I don't, and I never said it in the first place.
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To answer your other question, "How did they get by before they had these fees?", well the airlines had a dramatically lower cost of fuel before. Â When fuel prices rise, the rising cost for a business is always passed down to the end customer. Â Airlines, grocery stores, etc, it causes the prices to go up or for new fees to be created.