Why airlines charge for bags

See The Way Airlines Charge for Bags Is Becoming More Complex and Expensive: As baggage fees rise at some airlines, fliers need to plan ahead to avoid a surprise price shock by Alison Sider & Allison Pohle of The WSJ. Excerpts:

"Baggage fees are changing and rising across the industry. Today, checking one bag on United Airlines, American Airlines, Delta Air Lines and Alaska Air will cost you at least $35. A second bag is another $45, at minimum. Some budget airlines also charge for carry-ons.

Spirit Airlines and Frontier have long used dynamic pricing for their checked-bag fees, where the cost can vary widely depending on the route and when you book. JetBlue Airways recently moved in this direction, too. Airline analysts and consultants say more airlines, including major players, are likely to join them.

The rising complexity and cost come as more airlines unbundle their prices for different elements of the flight. Meals are long gone. You might have to pay extra for your seat of choice. Airlines say it allows travelers to pick what they want to spend on. But it also means travelers who hyperfocus on airfare can lose out by not considering the total cost."

"Checked bags used to be included in the cost of tickets. Budget carriers such as Spirit and Allegiant led the way in charging for checked bags. Spirit introduced a fee for them in 2007, and major carriers couldn’t resist following suit.

Bag fees are lucrative: They generated almost $7 billion in revenue for U.S. airlines in 2022, the most recent year of federal data. Last year’s figure was on track to outpace that. 

Some airlines attributed the most recent increases to their own rising costs. Carriers are having to shell out for costlier fuel and higher salaries. And it is tough for airlines to raise fares without a rival swooping in to undercut them, said Engel. 

There is also some tax advantage to the bag fees. Unlike fares, those fees aren’t subject to a 7.5% federal ticket tax."

"JetBlue fliers will pay a higher price during high-demand periods such as spring break, summer and winter holidays. During those busy times, checking a bag at the airport for a domestic flight will cost as much as $50, which is $5 more than the off-peak price. Paying in advance saves $10."

"Airlines have in many cases added tracking capabilities allowing passengers to follow their bag’s progress for peace of mind.

And most airlines are less likely to lose or mishandle your bag than they used to be. Out of every 1,000 bags checked last year about 5.8 were mishandled by major U.S. carriers, according to Transportation Department data. That is compared with 6.4 bags per 1,000 in 2022."

"One side effect of bag fees has been a heightened love affair with carry-ons.

Some travelers have wondered if it would make more sense to charge for carry-ons to reduce time waiting for other passengers maneuvering clunky suitcases into bins. 

Some budget airlines, however, charge as much or more to bring a bag aboard the plane than they do to check it. There was blowback when Spirit first announced that policy in 2010. Ben Baldanza, who was Spirit’s chief executive at the time, defended the policy and said it worked to speed up the process of getting on and off the plane."