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Airlines cash in with those extra fees

Checked bags, reservation changes bring in billions
U.S. airlines continue to collect record fees from passengers who check suitcases or make changes to their reservations.

NEW YORK – U.S. airlines continue to collect record fees from passengers who check suitcases or make changes to their reservations. In the first three months of this year, airlines took in $1.6 billion in such fees, up 7.4 percent from the same period last year.

That’s the highest amount for the first quarter since bag fees started in 2008, according to data from the Bureau of Transportation Statistics. January through March is traditionally the slowest period for air travel.

The fees climbed, in part, because more passengers flew at the start of the year – 3.2 percent more seats were filled. The airlines also increased some fees and forced more passengers to pay them.

While the standard fee for the first checked suitcase remains $25, fees have been going up for the second or third checked bag or for overweight luggage. And more passengers are now subject to those fees, which can be as high as $200 per bag. For instance, United Airlines recently reduced the number of bags some elite frequent fliers can check for free.

And JetBlue Airways announced in November that it will soon start charging for checked baggage for its cheapest fares, although it has to disclose the amount of the fee and when it would apply to passengers.

All of these add-on charges, along with falling jet fuel prices, helped the largest 26 U.S. airlines post a combined $3.1 billion in profits during the first quarter. Their net profit margin reached 8 percent, a significant jump from the 1.3 percent margin the year before.

During the past 12 months, the airlines took in $3.6 billion in bag fees and another $3 billion in reservation change fees, typically $200 for domestic tickets and as high as $1,000 for an international itinerary.

Common fees

As a record 222 million people prepare to fly on U.S. airlines this summer, here’s a reminder about some of the fees fliers will face.

Checked bag. Most airlines now charge $25 each way for a checked suitcase. Southwest Airlines and JetBlue Airways do not, although JetBlue is about to start charging for some types of tickets.

Reservation changes. Airlines charge up to $200 to change a domestic ticket and that is before any difference in fare. International flights cost even more to alter.

Preferred seats. For short flights, it could cost as little as $9 extra to get a better seat. For long-distance international flights, it could be $300. Typically, passengers pay $25 to $50 more.

WiFi. Up to $30 a flight. Large discounts are given for purchasing it in advance with Internet provider Gogo selling one-day passes for $16.

Discount airlines like Spirit, Allegiant and Frontier charge for things most fliers assume are free, like water, carry-on bag and printing a board pass at the airport. Read the fine print before booking.



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