U.S. airlines increased more than 50 different fees since February 2012, according to a study by TravelNerd, the developer of a web-based airline fees comparison and search tool. The increases helped airlines to grow airline fee revenues worldwide by 11% in 2012 to $36.1 billion from 2011.
Travelnerd study found:
- 36 out of the 52 fee changes are direct fee increases, with the remaining changes predominantly a result of:
- Bundling / unbundling of fees (e.g. instituting 1 fee for priority boarding and seating or instituting 2 separate fees for priority boarding and seating that were previously bundled into 1 fee)
- Increasing fee price ranges (e.g. Spirit changed its premium seat fees from $25-$75 to $12-$199)
- Redefining fee policies (e.g. Allegiant kept the same fee price of $50 for overweight bags 51-70 pounds but changed the fee policy to apply for bags 41-70 pounds)
- 28 out of the 52 fee changes are related to baggage fees, 19 changes are related to service fees, and 5 changes are related to in-flight fees
- Despite Spirit’s infamous $100 per carry-on bag fee, the majority of fee increases were within $5-$10
- 18 out the 52 fee changes are attributed to Spirit Airlines and Allegiant Air, ultra low cost carriers (ULCCs) notorious for charging fees
- Lastly, a small ray of hope comes from United Airlines, who reduced its overweight bag fees from $200 to $100 for bags 51-70 pounds and from $400 to $200 for bags 71-100 pounds
“These changes have had a tremendous impact on U.S. travelers, especially on families. Travelers really have to be extra cautious when booking a flight. U.S. carriers are becoming creative at charging consumers extra fees,” says Alicia Jao, VP Travel Media at TravelNerd.
"A new trend that we’re currently seeing is carriers bundling and tiering services. This practice is not only more confusing for travelers, but it also complicates price comparison. Even airlines that have touted fewer fees are joining the game, indicating only more fees in 2013.”
TravelNerd compared the fees (including announced upcoming fee changes) of 14 major U.S. airlines in January 2013 to those reported by the airlines throughout 2012, tracking each change. Airline fees were categorized as baggage fees, service fees, or in-flight fees.
Baggage fees
- Carry-on bag
- First checked bag
- Second checked bag
- Additional checked bags
- Overweight checked bag
- Oversized checked bag
- Pet in cabin
- Pet checked with baggage
Service fees
- Ticket change online
- Ticket change in person / over the phone
- Seat selection
- Preferred / premium seats
- Priority boarding
In-flight fees
- Unaccompanied minors
- Food and beverages
- Other (blankets, pillows, headphones, etc.)
TravelNerd included the following announced and upcoming fees in its study:
- Airtran’s checked bag fee increases (February 13)
- Allegiant’s checked bag fee increases (April 30)
- Southwest’s checked bag fee increases (February 13)
TravelNerd, a division of NerdWallet, seeks to empower consumers to make the best decisions about travel planning and booking through apps that compare such elements as airport transportation and airline fees to help travelers save time and money. The TravelNerd Airport app for iPhone® and iPad® and online tools have been featured in The New York Times, The Los Angeles Times, The Consumerist, LifeHacker, MarketWatch, CNBC, CNET, and Reuters.
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