Don't forget it costs AC money to process baggage. Look at the steps involved:
- staff to receive the bags (rather than going straight from Kiosk to gate)
- cost of destination sticker.
- where applicable and not paid for by the airport as part of landing fees, cost of luggage sorting.
- cost of baggage handlers who load the aircraft.
- added weight = added fuel consumption
- cost of baggage handlers who unload the aircraft
- where applicable cost of luggage sorting at transfer/destination airport
- cost of finding lost baggage
- cost of mini amenity kit provided to those who lose baggage
- cost of delivering lost baggage
- cost of replacing lost baggage