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Monday, December 13, 2010

Money in Luggage

International fees help add $900M to airline revenue | Chicago Breaking Business: "The sky appears to be the limit when it comes to the money airlines make by charging passengers to check luggage.

The 20 largest U.S. carriers collected $906.4 million in baggage-related revenue in the third quarter, a 23 percent jump from 2009 results, according to data released Monday by the Bureau of Transportation Statistics.

New international fees adopted this year, a rebound in air travel and growing passenger frustration over limited overhead space in airplane cabins all contributed to the skyrocketing fee income, observers said.

Some passengers are tiring of the hassle of dragging bags on planes, while carriers are forcing travelers to check jumbo-size bags before they leave airport lobbies, noted Tom Parsons, founder and CEO of BestFares.com

“It could be that more people elected not to fight for overhead space, too,” Parsons said.

Adopted by every U.S. carrier except Southwest Airlines, the controversial charges for checked luggage continue to be lucrative for U.S. airlines, which are on pace to report an annual profit this year for the first time since 2007."

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