Five reasons airline fees up 50% year-over-year

by Tom Johansmeyer on

Does your wallet feel a little bit lighter? A new USA Today analysis reveals that airline fees are on the rise, with some up more than 50 percent relative to a year ago. The study compares the extra fees (not to be confused with fares) of 13 airlines and shows just how important this revenue source is to the airline sector.

According to USA Today, “The numerous fees are a sore subject for many fliers, but their dissatisfaction hasn’t deterred airlines from bringing in record revenue from additional fees.”

The fees were good for $2.1 billion last quarter, with $893 million of it coming from checked bags and $600 million from changed reservations.

So, where did all this money come from? Here are five ways airlines have turned those extra charges into a big business:

1. First checked bag: most airlines in the United States hit you for up to $25 for the first bag you check, with only Southwest and JetBlue abstaining. Most charged $15 a year ago, according to USA Today, with four not playing this aspect of the fee game.

2. Change fee spikes: a year ago, the most expensive coach change fee was $250, charged by Continental, Delta, United Airlines and US Airways. This year, it surged to $300, an increase of 20 percent, charged by American Airlines for some international flights.

3. Pay to call: still resisting the internet? Booking by phone costs an extra $35 on US Airways, while Allegiant Air hits you for a $29.98 round-trip booking fee and another $14.99 for “convenience.”

4. Preferred seating: United asks for up to $159 for preferred seating, which can give you up to five more inches of leg room. A year ago, it would have set you back only $119.

5. Get a receipt: Continental (for which this isn’t new) – along with American, Hawaiian and US Airways – have an extra fee for passengers who want a receipt after they have taken their flights.

[photo by Deanster1983 via Flickr]

Airline extra fees: $2 billion in three months

by Tom Johansmeyer on

Airline fees are definitely not going away anytime soon – not after the second quarter it gave the airline industry. Carriers in the United States raked in $2.1 billion in fees and extra charges in the second quarter of this year, a 13 percent year-over-year surge. And, it was good enough to deliver the sector’s first profitable quarter since 2007.

Well, here’s the worst part for you: most of it came from checked baggage fees. This annoyance was good for $893 million in the second quarter of 2010, a gain of 16 percent from the second quarter of 2009. Reservation fees were good for $594 million, with ancillary revenue (e.g., frequent flier mileage sales and pet fees) reaching $618 million.

Delta benefited most from the fees that passengers hate most, at $682 million. American Airlines and US Airways were next.

[photo by cliff1066 via Flickr]

Trucker-style pilot gets nine months in jail

by Tom Johansmeyer on

Stephen Sharp was pushing for probation. The former US Airways Express pilot was nailed by the feds for selling “selling a powdered drink mix over the Internet that he claimed was ‘100 percent’ effective in helping drug-using truck drivers, pilots and train engineers pass federally mandated drug tests.”

Yes, it was a genius move for a man in a highly regulated profession … which is why the judge gave him nine months behind bars for failing to grasp “the magnitude of the potential harm” of his actions.” Sharp lost his job after the feds raided his lab. So, it’s hardly surprising that the judge cut off Sharp’s lament with the question: “If you think those years were hard, how do you think you would have felt if a pilot was able to disguise his intoxication with your product and crashed a plane killing 250 people?” Cercone asked.

[photo by amandabhslater via flickr]

NYC pulls trigger on mass execution of geese

by Tom Johansmeyer on

For the past several weeks, the last thing you’d want to be is a goose in New York City. Hundreds of them have been “euthanized,” in an attempt to keep the skies safe. You may remember the impact that geese can have on a plane from a year and a half ago, when an unlucky bird forced a US Airways plane out of the sky and onto the Hudson River.

According to the Associated Press:

Carol Bannerman, spokeswoman for the U.S. Department of Agriculture’s Wildlife Services, said Monday the department was asked to remove Canada geese from more than a dozen locations within seven miles of city airports.

In Brooklyn‘s Prospect Park, for example, around 400 geese were rounded up and killed using carbon dioxide – “because they are a risk to planes,” the article continues. Last summer, the body count hit 1,200, which is what it’s expected to reach this year.

[photo by mikebaird via Flickr]

Summertime, and the maggots are easy

by Alex Robertson Textor on

It’s summertime, which means that for people in many parts of North America, certain types of vermin are particularly well-represented in kitchen cupboards, bathroom corners, basement nooks and, heck, just about everywhere. Mosquitoes, cockroaches, water bugs, and other little flying and scurrying insects make their presence especially well known across North America during the summer.

But maggots? Maggots, thankfully, we see less frequently than garden-variety mosquitoes and water bugs.

Passengers on US Airways flight 1537 on Monday from Atlanta to Charlotte were not so lucky as the rest of us. Flies and maggots materialized in the cabin before take-off. Some passengers were even rather terrifyingly rained on by maggots after more decaying flesh. Entomophobes everywhere will certainly find the cell phone video of the experience, taken by a passenger, to be seriously stomach-turning.

Apparently some rotting meat was responsible for the presence of maggots and flies on 1537. Thankfully, the airplane did not take off as scheduled. Passengers were removed from the plane, and a cleaning crew then boarded to scrub the overhead luggage areas clean. The plane then flew on to Charlotte, where it was fumigated. As disgusting as the event originally was, it appears to have been dealt with properly by US Airways.

Beyond the mere curiosity of the event, there is some irony in the fact that it comes during one of the best weeks for press for the airline in recent memory. US Airways has gotten great coverage this week for its ultra-cheap Twitter-publicized fares.

(Image: Flickr/asrusch)