AviationChecked baggage fees are taking off a supersonic speed

How your baggage is earning airlines billions

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Baggage is now a billion dollar business for U.S. airlines.
Baggage is now a billion dollar business for U.S. airlines. Photo Credit: iStock/NeoPhoto

What brings a smile to the face-off airline bosses more than having all those high-priced seats in First and Business Class fully occupied?

The answer is down below - in the baggage hold.

New figures have revealed that in 2024 U.S. airlines collected a record-breaking US$7.27 billion in checked baggage fees.

American Airlines in 2008 became the first US airline to charge a fee for the first checked bag on its domestic routes. That fee has now doubled.

Aviation consultant Jay Sorensen of Ideaworks told the BBC that legacy carriers followed the lead of budget airlines, who redefined pricing by unbundling services.

“There was a time when checked bags, seat selection, and meals were standard,” he says. “But traditional airlines felt they had to adapt or lose out to low-cost competition.”

Most legacy carriers in Asia have resisted the temptation to charge for checked baggage, within limits.

Singapore Airlines, for example states on its website, “Your checked baggage allowance is based on the weight or piece concept, depending on your final destination.”

One of the consequences of airlines charging for checked luggage is a significant uptick in sales of smaller bags that the passengers are taking into the cabin.

Another consequence, surely, will see airlines becoming more vigilant on the size and weight of bags being carried onboard.

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