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


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