Airlines took in $27 billion in fees in 2012
Sep 13, 2013, 1:25 pm
#1
In Memoriam, FlyerTalk Evangelist
Original Poster
Join Date: Jun 2000
Location: Benicia CA
Programs: Alaska MVP Gold 75K, AA 3.8MM, UA 1.1MM, enjoying the retired life
Posts: 31,849
Airlines took in $27 billion in fees in 2012
From paying for checked luggage and early boarding to extra legroom and on-board snacks, travelers know flying these days means never closing your wallet.
Now, there’s more proof. Carriers around the world collected more than $27 billion last year in fees and other non-fare revenue, which has become “a crucial component of airline income,” a new report finds. The figure represents a 20 percent jump over 2011.
Now, there’s more proof. Carriers around the world collected more than $27 billion last year in fees and other non-fare revenue, which has become “a crucial component of airline income,” a new report finds. The figure represents a 20 percent jump over 2011.
Sep 13, 2013, 3:45 pm
#2
FlyerTalk Evangelist
Join Date: May 2002
Location: Pittsburgh
Programs: MR/SPG LT Titanium, AA LT PLT, UA SLV, Avis PreferredPlus
Posts: 31,008
These stories and comments always puzzle me. Does anyone believe the airlines would have lost $27B more if they had no fees? No, it just would have been bundled into the fares. The "outrage" over fees makes for good headlines, but paying for services provided, in concept, is fine with me. Why should I pay $10 more for airfare if I don't check a bag? I'll pay $10 less and the person with the bag can pay the $20.
I do think some of the fees aren't in line with the added value (though marginal vs. loaded cost is an interesting topic), but I have no big beef with the concept.
I do think some of the fees aren't in line with the added value (though marginal vs. loaded cost is an interesting topic), but I have no big beef with the concept.
Last edited by cblaisd; Sep 13, 2013 at 4:36 pm Reason: Clarified per new information
Sep 13, 2013, 6:30 pm
#3
In Memoriam, FlyerTalk Evangelist
Original Poster
Join Date: Jun 2000
Location: Benicia CA
Programs: Alaska MVP Gold 75K, AA 3.8MM, UA 1.1MM, enjoying the retired life
Posts: 31,849
UA made over $5.3 billion in ancillary revenue last year, the highest of any U.S. carrier. Wouldn't be surprised to see them hit $6-7 billion next year with marketing of things like year-long subscriptions to a product that allows you to bypass baggage fees. If you look at the bottom line, they're pretty much dependent on it.
http://www.denverpost.com/business/c...ary-fees-soars
At $38+ a head in Denver I can hear the cash registers ringing and competitors trying to catch up .
United — the largest carrier at Denver International Airport, with 40 percent of the market share — received more than 14 percent of its revenue from ancillary fees, and its average passenger spends an additional $38.11 in fees.
At $38+ a head in Denver I can hear the cash registers ringing and competitors trying to catch up .
Sep 16, 2013, 7:32 am
#4
Join Date: Nov 2006
Location: MEL
Programs: DL, QF, QR Gold, MR Lifetime Gold
Posts: 7,003
It's a bit extreme, I know, but my point is that it's an inconsistent idea. It sounds more like an excuse rather than a reason.
Similarly, change fees have gone up, especially at DL. If you wanted to change an int'l ticket it used to be $100, then $150, then $200, and now I think (not sure tho) it's $300. Clearly it does not cost the airline more to apply a change to the ticket. This kind of fee increase is not justified.
The IOS (International Origin Surcharge) that Delta practices is also foul. An award Europe-US has this surcharge, while US-Europe, on the same flights, does not.
As long as some of these fees appear to be made up during a night out drinking, people are going to dislike them. Increasing the prices is at least an honest, straight forward approach.