Southwest rolls retired caller fare bundles
Checked bags are a large concern for U.S. airlines, bringing successful much than $7 cardinal successful gross past year, according to information from the Bureau of Transportation Statistics. The fees person brought much gross to the airlines than it ever had anterior to the pandemic, the information shows.
Airlines began shifting their checked container argumentation successful caller years to support up with what they accidental are rising operational costs, including higher prices for substance and accrued wages.
Most recently, Southwest Airlines announced it volition commencement charging $35 for the archetypal checked container — aft much than 50 years of lone charging for a 3rd bag. Changes astatine Southwest came amid mounting unit from activistic investors to amended its fiscal performance. The hose successful September predicted that caller fees would pb to $1.5 cardinal a twelvemonth successful revenue.
Last year, JetBlue brought Uber-style surge pricing to bag-check fees, making it much costly to cheque luggage during highest question periods. American Airlines besides accrued its fees successful 2024 from $30 to $35 for the archetypal checked bag.
Breaking down the gross from checked bags for U.S. airlines
Checked bags brought successful astir $7.27 cardinal successful gross past twelvemonth for Alaska Airlines, Allegiant Air, American, Breeze Airways, Delta Air Lines, Frontier Airlines, Hawaiian Airlines, JetBlue, Silver Airways, Southwest, Spirit Airlines, Sun Country and United Airlines, according to the government's information that was past updated connected May 6.
That is up from $7.07 cardinal successful 2023, Bureau of Transportation Statistics' information shows.
In 2022, U.S. airlines made implicit $6.7 cardinal successful container fees, different large leap from the $5.3 cardinal made successful 2021.
American, Delta and United — the 3 largest U.S. airlines — made implicit $1 cardinal each past twelvemonth connected checked bags — and their gross from it has been climbing since the COVID-19 pandemic halted aerial question successful 2020.
When the pandemic hit, full checked container gross plummeted to $2.84 cardinal successful 2020, down from $5.76 cardinal successful 2019.
Kiki Intarasuwan is simply a quality exertion for CBS News & Stations.
Kris Van Cleave contributed to this report.
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