How airline fees turn luggage into billions of dollars
Sam

Business Reporter

Getty Images

US airlines alone collected $7.27 billion from boarding bags last year

The swelling cost of auxiliary or “trash fees” has aroused anger among politicians and consumer groups as Air Canada and Southwest’s latest airlines charge passengers for boarding luggage. At the same time, with the booming development of hand luggage, the sales of suitcases are small enough to be able to fly.

Lauren Alexander stood outside the downtown Toronto airport and flew around Boston over the weekend. She described the additional allegation as "absurd".

"It feels like a trick," the 24-year-old said. "You buy the ticket, you think it will be cheaper, and then you have to pay an extra $200 (£148) (with a suitcase).

To avoid expense, Ms. Alexander traveled with a small backpack as her hand luggage.

Sage Riley, 27, agreed, telling the BBC that “it could be expensive.”

There was a time when checked bags, seating options and your meals were standard on commercial flights. Jay Sorensen of American Airlines consultancy Ideaworks said that with the rise of budget airlines, everything comes with it.

In 2006, British low-cost airline Flybe became the first airline in the world to start collecting passengers for checking bags. Pre-ordered luggage products are £2 and will be charged if the customer does not pay in advance.

The other budget carriers then quickly followed suit, together with so-called flag bearers or established airlines, at least on shorter flights.

In 2008, American Airlines became the first American airline to charge $15 for the first checked baggage on its domestic routes.

Mr Sorenson said traditional airlines like this feel that when they "begin to realize that low-cost airlines are offering very important competition", they have no choice. "They feel they have to do something to satisfy that," he added.

Getty Images Southwest AirplaneGetty Images

Now, American Airlines Southwest Airlines charges passenger fees

According to federal figures, last year’s check-in fee was $7.27 billion, with American Airlines alone making $7.27 billion from the box office they signed in. This is up from $7 billion in 2023 and $5.76 billion in 2019.

There is no doubt that more of us are just trying to carry it with us. Kirsty Glenn, managing director of British suitcase company Antler, confirmed that demand for small suitcases continues to grow, which meets airline luggage restrictions.

“We’ve seen huge spikes online and on our website,” she said. Ms. Glenn described a new small-dimensional case where her company was founded in April, adding that “proves the trend of carrying luggage travel only, and it’s sold like crazy.”

Meanwhile, social media content about travel packaging “hackers” and baggage that meets airline carry-on scale measurements have soared, according to travel journalist Chelsea Dickenson. She made this for Tiktok.

Ms. Dixon said: “Social media has really driven the idea of ​​needing a luggage that fits the luggage allowance requirements.

Ms. Dickenson’s social media followers have angered a million followers, adding that her luggage video has become a “central part” of the content she created.

"It shocked me," she said. "I might spend weeks researching a large trip, and the resulting videos won't be like I went to buy a cheap suitcase, brought to the airport, tested and reported in one baggage size."

The overall cost for all airlines, from luggage to seat selection, buying WiFi access, lounge access, upgrades, and food and beverages, is expected to hit $1.45 billion this year, accounting for 14% of the industry's total revenue. According to the International Air Transport Association representing the industry. By comparison, last year was $137 billion.

The figures have attracted the attention of some Washington politicians, who last December’s boss baked in front of the Senate committee. It is a Democratic senator who uses the term "trash fee".

He hopes the federal government reviews such fees and potentially good airlines. We asked the U.S. Department of Transportation for comment, but received no response.

Chelsea Dickenson travel reporter Chelsea Dickenson at the airportChelsea Dickensson

Chelsea Dickenson releases video

But if it is not enough to have to pay for check-in tickets, more and more airlines are charging fees for hand luggage. For example, the Irish budget airline Ryanair can only allow you to carry a small bag that fits under the seat in front of you for free. If you want to get a bigger bag or suitcase into the overhead locker, this will get you from £6.

Other European airlines that now charge similar fees for hand luggage are EasyJet, Norwegian Airlines, Transavia, Volotea, Vueling and Wizzair.

This annoyed the pan-European consumer group Becu (European Consumer Organization), which filed a complaint with the European Commission last month.

Becu cited a 2014 EU Court ruling that said: "Hand luggage cannot be subject to price supplements as long as it meets reasonable requirements for its weight and size and meets applicable safety requirements".

However, the reason for deciding “reasonable demands” remains the gray area that requires an official ruling.

But, as Indian Airlines Indigo shows, there can be another way to do things. Its owner, Pieter Eibers, said it does not charge a boarding baggage fee.

"The whole philosophy here is different," he said. "We don't want long lines, nor do we want to debate the weight of our luggage at Gates. We don't have any of that. We twisted the plane in 35 minutes."

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