Paying a fee to check luggage has become a routine part of air travel,


The Truth About America's Airline Baggage Fees
Paying a fee to check luggage has become a routine part of air travel,
but it wasn't always this way.
In the United States, baggage fees started in 2008,
right around the time oil prices were peaking.
Another day, another dollar.
Crude oil broke another record.
We 're going to go from a profitable year in ' 07 to a ten billion dollar loss in ' 08
and the only thing that has changed is fuel.
Jet fuel prices have them taking drastic measures including a fifteen dollar charge for the first checked bag.
Fifteen dollars?
Holy cow!
I 'll have to put my underwear in my pockets.
To avoid the new fees, passengers started cramming everything into their carry-ons.
But two years ago fuel prices dropped and they 've stayed low ever since.
The fees, however, have n't gone anywhere.
The only exception among major carriers is Southwest Airlines,
which is famous for their " bags fly free " marketing campaign.
We love duffel bags, golf bags, small bags, these bags right here,
They fly free.
I wouldn't pay to fly in here.
Why would these airlines charge for bags?
Why do you charge for bags?
To make money.
Lots of money.
Last year revenue from baggage fees was nearly four billion dollars
and the 7. 5 % excise tax that airlines have to pay on ticket prices,
doesn't apply to baggage fees.
So the tax code actually encourages the use of fees.
And they have n't stopped at checked bags.
With carry-on space now increasingly scarce,
airlines can charge a fee to board early so you can claim spots in the overhead bin.
Revenue from the fees, combined with other factors like major mergers,
have meant higher profits for airlines.
But what's good for the airlines has not benefited consumers.
Airlines have n't lowered airfares in proportion to higher profits.
The planes are filling up anyway, so they don't need to compete on fares.
And all those carry-on bags are contributing to longer lines at airport security.
This summer, passengers were stuck at two, three and even four hour lines at airports across the country.
In response, a group of Senators and the Head of Homeland Security asked the airlines to waive baggage fees.
We 've asked airlines to consider possibly eliminating the checked baggage fee.
There, there 's been an increase in the carry-ons due to these fees.
So, isn't it time to get rid of baggage fees?
Paying a fee to check luggage has become a routine part of air travel,
but it wasn't always this way.
In the United States, baggage fees started in 2008,
right around the time oil prices were peaking.
Another day, another dollar.
Crude oil broke another record.
We 're going to go from a profitable year in ' 07 to a ten billion dollar loss in ' 08
and the only thing that has changed is fuel.
Jet fuel prices have them taking drastic measures including a fifteen dollar charge for the first checked bag.
Fifteen dollars?
Holy cow!
I 'll have to put my underwear in my pockets.
To avoid the new fees, passengers started cramming everything into their carry-ons.
But two years ago fuel prices dropped and they 've stayed low ever since.
The fees, however, have n't gone anywhere.
The only exception among major carriers is Southwest Airlines,
which is famous for their " bags fly free " marketing campaign.
We love duffel bags, golf bags, small bags, these bags right here,
They fly free.
I wouldn't pay to fly in here.
Why would these airlines charge for bags?
Why do you charge for bags?
To make money.
Lots of money.
Last year revenue from baggage fees was nearly four billion dollars
and the 7. 5 % excise tax that airlines have to pay on ticket prices,
doesn't apply to baggage fees.
So the tax code actually encourages the use of fees.
And they have n't stopped at checked bags.
With carry-on space now increasingly scarce,
airlines can charge a fee to board early so you can claim spots in the overhead bin.
Revenue from the fees, combined with other factors like major mergers,
have meant higher profits for airlines.
But what's good for the airlines has not benefited consumers.
Airlines have n't lowered airfares in proportion to higher profits.
The planes are filling up anyway, so they don't need to compete on fares.
And all those carry-on bags are contributing to longer lines at airport security.
This summer, passengers were stuck at two, three and even four hour lines at airports across the country.
In response, a group of Senators and the Head of Homeland Security asked the airlines to waive baggage fees.
We 've asked airlines to consider possibly eliminating the checked baggage fee.
There, there 's been an increase in the carry-ons due to these fees.
So, isn't it time to get rid of baggage fees?
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