Airlines Still Charging Bag Fees

Despite Lower Fuel Costs, Which Was Used To Rationalize The Fee, Many Carriers Are Still Charging Extra For Checked Bags

(AP)  When airlines started charging some passengers $15 or more earlier this year to check their bags, they blamed soaring fuel costs. Since then, oil has plummeted. Yet the industry hasn't stowed away the bag fees.

Many of us are still paying to fly with a suitcase that doesn't squeeze into the overhead bin or under the seat.

The reason is simple: Airlines are still losing money, though now largely because of the recession instead of oil.

And don't expect the fee to disappear even when the economy rebounds. Airlines are finding the fees to be a reliable source of revenue and say that such charges allow passengers to choose only the services they want.

Passengers, meanwhile, are paying up and grumbling. Many are being socked, on average, $15 for the first bag and $25 for the second.

"I think it's unfair and I think it's highway robbery," said Benjamin Johnson, a 38-year-old government employee, as he headed from Atlanta to Orlando, Fla.

For the airlines, the bag fees, on top of charges for other once-free amenities, add up to much-needed revenue. The industry is expected to lose $4 billion for 2008, excluding one-time items, despite the plunge in the price of a barrel of oil from $147 in July to around $40 this week, said Calyon Securities airline analyst Ray Neidl.

Airlines now say they are being hurt by the recession, which has caused demand for seats to drop. The International Air Transport Association said global passenger traffic declined 1.3 percent in October from a year earlier.

Airlines also have been weighed down by bad bets they made on the price of fuel when it was skyrocketing. After locking in at prices that looked reasonable earlier this year, some are paying substantially more than market price for a portion of their fuel.

Airlines do not break out the revenue brought in by baggage fees.

"While fuel prices have fallen, the economy has created a new uncertainty for us, and the industry's going to lose billions of dollars this year," said Doug Parker, chief of US Airways Group Inc. "Indeed, it was fuel-driven economic concerns, but now we have different economic concerns. And having said that, I, for one at least, believe it's the right model for the business, irrespective of what environment we're in."

Airlines say the fees are a new way of doing business in which services that were once bundled into the price of a ticket are offered a la carte.

An October poll of frequent travelers found that half prefer a lower ticket price in exchange for a la carte pricing for food, beverages, headphones and blankets. But the same survey, conducted for IBM, found that 82 percent described the baggage fees as a "rip-off." By comparison, only 45 percent viewed food and nonalcoholic drinks that way.

After getting off a recent flight to Atlanta, insurance sales representative Cecilia Kolstad said it was crazy she had to fork over extra money to check a bag.

But "if it's between that and seeing an airline go out of business I guess I'll pay the $15 because I like to fly," said Kolstad, 55, of Pembroke Pines, Fla.

Some travelers bypass the fees by packing lighter. Airlines typically waive the fees for passengers who have elite status in their frequent flier clubs, first-class passengers, and travelers on international flights.

Passengers also can get around the fees for the first two bags by booking on Southwest Airlines, though it doesn't fly to some major cities such as Boston, Atlanta and Miami. But how long Southwest can go without charging the fees is anyone's guess.

Dave Ridley, a Southwest marketing executive, said in October his airline would be surveying people about charges, and he would not rule out fees in the future.

[BBuggy]

VERY IMPORTANT!!!!!!!!

DO NOT BOOK ANY FLIGHTS THROUGH:

CHEAPTICKETS.COM!!!!

I recently booked a flight for my mother through cheaptickets.com and was TOTALLY SCREWED. I reserved a flight for April 4, 2009 and somehow was goven a flight for April 11, 2009 and was not notified so when we went to take my mom to the airport, she was unable to fly home as planned. When we contacted the customer support for the website, they insisted that it was a mistake on our part not theirs. Then my husband got on the phone and talked to 2 different supervisors and still got told we were out of luck and they would not change it. Then I called today and tried to get a refund for my ticket and again hit a brick wall. I was informed that the ticket was non-refundable eventhough i still have a week before the ticket was to be used. NO WHERE on the ticket or email did it tell me that it was a non-refunadable fare.. I was on hold for 95% of the 35 minute cal and the supervisor was uncooperative. In the end the best I was given is she submitted the claim to tech support and its gonna take 2 WEEKS for them to investigate it. To sum it up I am basically looking at loosing 183 dollars because they screwed up my ticket and wont admit it. So, my warning to anyone considering booking a flight online:
DO NOT EVER USE CHEAPTICKETS FOR ANYTHING!

Britany Gerhart

PLEASE FORWARD THIS TO ANYONE YOU KNOW WARNING THEM NOT TO USE CHEAPTICKETS FOR THEIR TRIPS!!!!

[skissndoll]

... Believe it or not people... there is a method to their madness... let's look at this as non-judge-mental business men/women,
*you own a business
*your clientele are generally business men/women and the occasional upper-middle class traveler who pays $700-$1000 per ticket.
*you offer above and beyond services
THEN*********** 911 hits America and targets your company
What do you do?
*generate revenue by lowering fares so the average Joe can now afford to travel
*cut out special services (meals, logo wings, complimentary playing cards, peanuts e.t.c)
THEN************ the price of oil sky rockets!
What do you do now?
*lower the weight on the planes by encouraging your customers to pack lighter
... How????
.........................the only way they will listen!!... create a fee...

Now ... you say add the charge to the price of the ticket!
BUT, when you search for a ticket , what comes up first?
...... the cheapest ticket!!... so by adding the ticket into the fare people will book on the competition!

**********************************************************************************************************

AND NOW... Oil prices are down ... the airlines are saving money by people packing less and the ones who are not packing less are paying for the airline to carry the extra fuel....


As a traveler you are now in control of your own spending!
*you have the OPTION to pack lighter and pay NO FEE
*you have the OPTION to bring your own food, OR buy food on board...

*you have the OPTION to wait in the long lines OR use the self serve machines (that are as easy as an ATM machine)

**AND YOU HAVE THE OPTION TO PURCHASE A **FIRST** CLASS TICKET!!!

.... WITH ALL THE SERVICES INCLUDED... (just think of it like booking All-inclusive at your hotel)

[rrozsa-2009]

BarbaraM99 -- If you really want to leave, I''m sure we can probably get enough generous souls to pool together enough money to buy you a one-way ticket someplace else! We don''t want anyone staying where they don''t want to be! But as you said, most countries have sticter immigration policies than we have nowadays.

[win4usa]

They''re going to price themselves out of business.

[barbaram99]

i am 54 and maine born and raised as for family i have no idea as we were raised in foster care and I ASKED gram before she died where did our kin come from before they came to America,,If she knew it died with her.

[jsd330]

Sometimes I think it might be better not to check a bag, since my experience is if you have to change planes 50% of the time if you have 20 min or less between connections your bag won''t make it until the next day anyhow, you would be better off sending it UPS or FEDEX, it would probobly be cheaper. Now with the airlines you pay more and get less, and the service is worse.
They caused a seat shortage for the holidays by cutting flights, that way they can raise fares.I hope it bites them in the a$$.

[barbaram99]

The greed. I flew years ago and it was better. Today I am appalled as I havenot flowed since the 80s. If I was so lucky as to leave here and knew I could live in ireland or such with out fear them flying me back to America I would have gone and stayed but I am poor and American born.