futureorthopod
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Joined: Sat Jun 05, 2010 3:08 am

Fees Fees Fee And The $$$$ Made For US Airlines

Mon Jul 16, 2012 3:33 am

Hi guys. I do not post much since I am clearly not as knowledgeable about all this stuff as all of you. Rather, I read to learn. However, I came across an article today on MSN that discusses how airlines have made billions off fees and how this has essentially helped these companies finally turn a profit status post 9/11

I have not flown in international carriers in over 9 years, thus I am not familiar with their fee structures. However, I'd be curious to know how they compare to the various fees here charged by the American carriers.

click link below for original article!

http://money.msn.com/investment-advi...irlines-that-make-the-most-in-fees

Cheers!

John

P.S. I can't wait till I have time to travel again (a bit busy with med school right now...but I hope to get out of country soon again)
 
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RE: Fees Fees Fee And The $$$$ Made For US Airlines

Mon Jul 16, 2012 4:08 am

The article is a little misleading......unless I'm mistaken, the legacy carriers always charged for animals, whether in the cabin, as checked baggage or as cargo and I believe coach pax were always charged for entertainment (headsets). So, those particular fees are nothing new.
"A committee is a group of the unprepared, appointed by the unwilling, to do the unnecessary"----Fred Allen
 
GA330
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RE: Fees Fees Fee And The $$$$ Made For US Airlines

Mon Jul 16, 2012 5:25 am

I think we all can agree here that without charging all the fees mentioned in the article, the airlines in United States would be bleeding pretty badly. The fees and cargo are the difference between profit and loss.

US collected ~$500M bag fees last year. Their net income was $71M
DL collected ~$800M bag fees last year. Their net income was $1.2B

I am even hearing rumors that WN may start charging for bag sometime in the future, since they can almost make $1B more in revenue. Recently, we dont really hear them tout that "bags fly free" anymore, and a year ago that was all that they were bragging about.

see the article below for more about ancillary revenue that the airlines collected in 2011
http://articles.philly.com/2012-05-1...llary-fees-million-in-baggage-fees
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