Sponsor Message:
Civil Aviation Forum
My Starred Topics | Profile | New Topic | Forum Index | Help | Search 
Are Additional Bag Check Fees Profitable?  
User currently offlineBriGuyinHou From United States of America, joined Apr 2008, 122 posts, RR: 0
Posted (8 years 1 month 2 days 16 hours ago) and read 1711 times:

am curious to know if airlines make profit on the additional baggage fee of $25. Does anyone here know or have an idea what an airline's costs are to fly one 50lb bag and how much profit (if any) do they realize by charging the now standard $25 fee.

An idea popped into my head that perhaps as a sales promotion an airline could charge $0 for the first bag; $25 for the second; and $10 for the third. Would that cover the costs associated with transporting the extra baggage? Would it be a good way for an airline to also build sales without reducing fares.

By the way, this is my first post. I have been a long time reader (years!), and I feel like I've gotten to know some of you. It is a pleasure to meet you all!

I've travelled the world and the seven seas. Everybody is looking for something.
3 replies: All unread, jump to last
User currently offlineFlyibaby From United States of America, joined Aug 2004, 1021 posts, RR: 5
Reply 1, posted (8 years 1 month 2 days 16 hours ago) and read 1705 times:

Welcome to Airliners!

All fees are basically pure profit. In the case of overweight or additional baggage however - it really will in all reality go to the fuel price. Every pound of weight just has to be pushed a little harder by the engines, raising RPMs ever so slightly. This in turn drives your consumption up. I think it is really a fair deal overall. If passengers decided to smarten up and only pack one bag - and utilize their carryon a little better...then the airline still makes out because they arent carrying as much weight anyway....causing a better fuel burn.

User currently offlineDaCubbyBearBar From United States of America, joined Apr 2008, 76 posts, RR: 0
Reply 2, posted (8 years 1 month 2 days 16 hours ago) and read 1683 times:

I would think that this would be pretty profitable for an airline. $25 to transport up to 50 pounds a couple hundred miles miles is good money. Maybe OPNLguy can tell you how gallons of gas would be required to transport 50 pounds say 800 miles. All the airlines that have added the second bag fee are doing it to help cover costs, but they are probably looking at you checking that second bad again on the return portion, for another $25. The aircraft barely notices that extra 50 pounds, so the burn is pretty minuscule.

Go Cubs Go Hey Chicago whaddya say the Cubs are gonna win today
User currently offlineClipper136 From United States of America, joined Mar 2006, 353 posts, RR: 0
Reply 3, posted (8 years 1 month 2 days 14 hours ago) and read 1644 times:

I second the Welcome.

The US Airways 1Q08 conference call (I read the transcript on-line) has a pretty good explanation about why the airlines is charging the bag fee and charging for "preferred" seating. Its not about covering the cost to fly baggage around, but is instead a way to raise revenue without increasing the fare. They call it ala carte pricing. Instead of increasing the fare for everyone across the board, they can have an extra $50 to $100 over the fare paid for those passengers that "choose" to use that service.

Top Of Page
Forum Index

This topic is archived and can not be replied to any more.

Printer friendly format

Similar topics:More similar topics...
Frontier Curbside Bag Check-in At DEN posted Mon Jan 16 2006 08:14:58 by 146CREW
JetBlue To Now Offer Online Bag Check posted Wed Nov 23 2005 00:04:13 by MiCorazonAzul
Airlines Incorporating Second Checked Bag Fees posted Sun Mar 30 2008 19:05:34 by GentFromAlaska
Flights To SCL From The US...Are They Profitable posted Mon Jan 21 2008 08:52:18 by Yegbey01
NK Raising Checked Bag Fees posted Mon Jan 14 2008 07:35:16 by Nkops
UA Self-Check-In Comps Are Down@SFO 30Nov posted Fri Nov 30 2007 09:03:59 by Stealth777
Why Are Discount Airlines So Profitable? posted Tue Mar 6 2007 04:12:45 by J3flyboy
Austrian: None Of Long-haul Routes Are Profitable posted Tue Dec 12 2006 07:07:21 by Jimyvr
$2 To Check A Bag Curbside With AA? posted Fri Jun 30 2006 03:05:30 by MSYtristar
Condor's Check-in 120 Min - Are They Serious posted Tue May 30 2006 11:39:36 by L410Turbolet