
When airlines started charging for the first bag it drove me crazy. They just nickel and dime you to death. Some are even charging for drinks and water! So how much money could you even make charging for bags? Well I guess the jokes on me, cause it turns out to be over a billion dollars.
When airlines said that baggage fees were successful, they weren’t kidding. Collectively, they pocketed an extra $1.1 billion in luggage fees in 2008. American and US Airways led the pack — collecting $278 million and $187.1 million in bag fees respectively.
United Airlines kicked off the fun back in February of 2008 when it announced a $25 fee for the second checked bag. In May, while fuel prices soared and airlines started to hurt, American announced that it would add a $15 fee for the first bag, and the flood gates opened.
Now that consumers are used to the fees, there’s really no getting rid of them, though Southwest recently claimed that its lack of fees was helping it gain market share.
Of course all this was started back when the fuel prices were incredibly high, and they were looking at a way to counteract it. But you have noticed they are still charging . . . and prices are no where near what they were.
(Via Consumerist)