Airlines Collect Record $33 Billion in Baggage Fees As American Airlines Hikes Charges for First Time in 6 Years
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The top 20 airlines collected over $33 billion in baggage fee revenue in 2023, a 15% increase from 2022. This accounted for 4.1% of total airline revenue.
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Baggage fees help airlines offset costs like rising fuel prices. Fees started after the 2007-2008 oil price spike when airlines began charging for the first checked bag.
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American Airlines recently increased checked baggage fees for domestic and some international flights. This is the first hike in about 6 years.
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Assigned seat fees also generate significant revenue for airlines, possibly comparable to the over $30 billion from baggage fees.
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The fees come from checked bags, heavy/oversized bag charges, and carry-on bag upcharges in some cases.