Re: airlines make $5.7 billion profit on baggage fees

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Posted by Bob Riggins on 2011-08-03 09:59:16 in reply to airlines make $5.7 billion profit on baggage fees posted by DougT on 2011-08-01 05:50:45

As I read the story, the airlines did not make $5.7 billion in profit from baggage fees (and reservation change fees), they only increased their gross income by that much. They only made $2.6 billion total, which is not the greatest return on investment.

I don't mind the airlines charging high enough fees and ticket prices to make a profit, but I don't like the baggage fee idea. I would rather see one bag included in the ticket price and just increase the price. That way people would stop trying to take so much carry on baggage on the plane.

One airline insider told me that they liked people loading up the overhead bins because the less baggage they have to put in the hold, the more cargo space they can sell to shippers.

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