Airlines piling fees on top of fees

Posted on: June 22nd, 2009 by Dave Bess

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Airlines in the US have been charging passengers $15 to check a bag for some time now, and two carriers have revealed that they will ask customers to pay an additional $5 this summer for paying at the check-in counter, launching a new wave of fees on top of fees.

Paying baggage fees online before leaving home is an option, and one that airlines are referring to as an “online discount”.

If carriers find that passengers accept this type of new fee, there are likely to be more that follow, according to industry observers, who say that as airlines around the world attempt to increase revenues, they add fees for certain seats and even fees to get through lines more quickly.

United Airlines has indicated that it is anticipating over $1 billion this year alone from fees paid by its customers for accelerating frequent-flier awards to checked baggage. This would account for more than five percent of the carrier’s overall revenue.

The new fees most likely to be introduced are those that have been tried by some other airline, somewhere else. Typically, a new charge begins with one or two carriers, with rivals watching and waiting to see if consumers revolt.

For example, United Airlines and US Airways have introduced fees of as much as $5 to pay baggage charges at the airport rather than online. Irish budget carrier Ryanair is now charging passengers to check-in. Even online, passengers have to pay a five-euro fee to check in, and if they wait until they arrive at the airport, the fee is significantly higher.

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