World airlines collect $33 billion in checked baggage fees

Checked baggage fees brought in $33 billion for 20 airlines worldwide last year, up 15 percent from the year before.

IdeaWorks, a US-based market research company, said that most passengers have to pay unnecessary extra fees for luggage (including check fees, overweight fines, etc.) when using airline services.

According to a study by travel industry experts IdeaWorks of 20 airlines, their checked baggage fees increased by 15% last year, to about $33 billion.

This study was conducted based on surveys from famous airlines such as American Airlines, Delta, United, Southwest, Emirates...

Currently, domestic baggage fees in the US for the first checked bag range from $25 to $89. Therefore, to avoid being charged more, many people are forced to deal with it by bringing extra carry-on baggage on the plane, according to a report by IdeaWorks.

Last week, American Airlines announced it would raise domestic check-in fees to $40 at the airport and $35 online, a 33% increase from its policy in 2018. United Airlines will also impose similar fees starting February 24.

The reason given by airlines for this increase is due to the escalating costs of labor and fuel. This is also a way to help them return to profit after a difficult time due to Covid-19.

"We don't want to increase, but this is a way to keep the base fare low and maintain the services that customers love in-flight such as wifi and in-seat TV," said a representative of JetBlue - a low-cost airline in the US.

Speaking to CNBC , an American Airlines representative said the fee increase allows their staff to spend more time with customers who need extra assistance during their travel. However, the airline also reduces the fee for small overweight bags.

According to IdeaWorks, checked baggage fees were considered a solution used by US airlines to gain more revenue during the period of soaring fuel prices, following the oil crisis from 2007-2008. But many airlines abused this fee to collect more money from passengers.

In addition to these costs, IdeaWorks said that last year airlines also earned nearly $118 billion from various additional fees from other services, such as seat selection, in-flight snack and beverage sales, and loyalty programs.

Anh Minh (according to Enterpreneur, CNBC )

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