Airlines are once again increasing the fees associated with checking bags, with United Airlines, American Airlines, and JetBlue Airways leading the charge. The amount passengers are charged for checking a bag varies depending on how and when they pay for the service. These carriers now charge more for checking bags at the airport or close to departure compared to paying in advance online. This shift is aimed at incentivizing customers to pay for their bags ahead of time to streamline the check-in process and expedite the boarding process.
American Airlines recently raised its checked bag fees for the first time in over five years and introduced a two-tiered pricing strategy similar to that of United, JetBlue, and other budget airlines. Passengers traveling in coach class with American Airlines will now pay $35 for checking the first bag on domestic flights if booked online in advance, or $40 if purchased at the airport. This new approach is said to help employees focus on customers who need additional assistance with their travel needs.
Certain passengers may be exempt from bag fees, such as those with specific airline credit cards, elite frequent flyer status, or traveling in premium class. These exceptions allow some travelers to check at least one bag for free on domestic or short international flights. Additionally, American Airlines has reduced fees for slightly overweight bags, a change that benefits passengers who previously had to remove items from their luggage last-minute to meet weight limits.
Baggage fees represent a significant source of revenue for airlines, with U.S. carriers generating over $5.4 billion in the first nine months of 2023 from these fees alone. Airlines argue that increased costs due to factors like labor and fuel necessitate raising bag fees to maintain profitability. JetBlue, for example, stated that adjusting fees for services utilized by select customers allows them to keep base fares low and offer complimentary amenities like seatback TVs and high-speed Wi-Fi to all passengers.
Southwest Airlines’ Unique Approach
While most major U.S. airlines have increased bag fees, Southwest Airlines remains an outlier by allowing customers to check two bags for free. Chief Operating Officer Andrew Watterson emphasized that Southwest’s efficient operations benefit from passengers checking bags rather than carrying them onboard, as it helps maintain quick turnaround times for flights. This approach prioritizes operational efficiency and customer satisfaction, with the aim of fostering repeat business from satisfied travelers.
By reevaluating bag fee structures and considering the impact on travelers, airlines can strike a balance between generating revenue and providing value to passengers. While bag fees are a necessary revenue stream for airlines, it is essential for carriers to weigh the potential consequences on customer satisfaction and loyalty. As the travel industry continues to evolve, airlines must adapt their fee structures to meet the changing needs and expectations of passengers.
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