Airlines’ revenue from baggage fees soaring

By RICHARD NEWMAN

HACKENSACK, N.J. — New baggage fees seem to be paying off for the largest U.S. carriers. Fourth-quarter luggage fees more than tripled year-over-year to $498.6 million, a new government report said.

The fourth-quarter baggage fee collections were up 42 percent from the third quarter, according to the U.S. Department of Transportation’s latest report on airline finances.

Since carriers hiked fees last year, it now typically costs $30 round trip to check one bag on a domestic flight and an additional $50 to check a second — total of $80. An additional charge of $50 each way is the norm if a bag weighs more than 50 pounds.

Leisure market

The fees are primarily aimed at the leisure market, as business travelers tend to travel with just a carry-on bag and many participate in frequent-flier programs that would waive the fees. Still, companies often get socked with the fees, and they’re not happy about it, said Kevin Mitchell, chairman of the Business Travel Coalition in Radnor, Pa., an advocacy group for corporate buyers of travel services.

“I’ve heard a lot of gripes,” he said.

Employees packing for training trips and service calls that can take days, weeks or even months need to bring more than a carry-on. And while overnight performance recognition and motivational meetings at resort hotels may be increasingly rare because of the recession, the companies still throwing such parties often pay for employees to pack swimsuits, golf gear and dinner wear.

The fee policies and billing procedures vary among different airlines and keeping track is “a bit of a nightmare for travel managers, and for travelers,” Mitchell said.

“Travel managers would like to see some uniformity across the industry,” he said.

X Newman writes for the Record of Hackensack, N.J. Distributed by McClatchy-Tribune Information Services.