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Airlines Bask in $29 Billion Worth of Your Baggage Fees in 2022
Airlines Bask in $29 Billion Worth of Your Baggage Fees in 2022-November 2024
2024-02-19 EST 22:13:49

A photo of bags on a conveyor at an airport.

When you’re , it can feel like you have to pay extra for everything. From seat selection, to and even snacks can all come with an additional fee these days. But nowhere are airline fees , where carriers, around the world, managed to rake in more than $29 billion in fees last year.

According to a report from consultancy firm IdeaWorksCompany and CarTrawler, airlines are tapping into in a big way, with revenue from charges accounting for 4.2 percent of global airline revenue.

The report, shows that revenue from baggage was up by more than $8 billion in 2022, compared with the previous year. And, while that figure is below the pre-pandemic level of $32.9 billion in 2019, the report found that the percentage of the total revenue airlines now make on baggage fees is up from 3.7 percent just three years ago.

A photo of workers loading luggage into a plane.

According to Simply Flying, airlines now have three main sources of luggage fees: checked baggage, added fees for heavy bags and fees imposed on larger carry-on bags. The site reports:

“For global network carriers, the baggage revenue is usually associated with basic-economy fares, while for low-cost carriers, baggage fees are typically charged to all consumers.

“That picture has changed, and now only eight airlines include checked baggage for their cheapest ticket types.”

As global carriers have sought to keep up with cheaper prices offered by budget airlines, many have introduced new tickets that don’t include things like carry on luggage or seat selection. Passengers that want to include these in their travel are then into the hold or carry additional luggage onboard the aircraft. This flexibility, the report argues, might actually be a good thing for customers:

“While no one is happy with paying for something once free, IdeaWorksCompany points out that baggage fees are good news for consumers. The report said they are a sign of ‘robust competitive behavior between traditional and low-cost carriers’ and that more network carriers in the Middle East and Asia ‘will gradually adopt a stronger a la carte approach’.”

But what do you think to this way of thinking? Are you happy having the flexibility to add carry-on bags whenyou need them, or would you prefer not to be charged for something that was once a given in airline travel?

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