Airlines made US$33 billion from baggage fees worldwide last year, and they could make even more this year
- Last year’s estimate is up almost 15 per cent from 2022, and it’s the first time it’s crossed US$30 billion since before the pandemic
- Carriers could be set to make even more this year, as several US airlines have upped their checked bag fees
Baggage fees alone were worth an estimated US$33.3 billion to airlines last year.
That’s according to a report from IdeaWorksCompany, a consultancy for airline ancillary revenues, and car rental firm CarTrawler.
IdeaWorks’ report analyses revenue disclosures from around 120 major airlines around the world, before collating a global estimate.
The fees are mostly for checking baggage, as well as added costs for heavy bags and larger carry-ons.
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Back in 2019, baggage fee revenue was worth 3.7 per cent of airlines’ revenue, whereas last year it was estimated at 4.1 per cent.
Total ancillary revenue – meaning the money airlines make from add-ons like choosing a seat or buying food – was estimated at US$117.9 billion globally.
The fee rises to US$40 if you pay in person rather than online, and to US$45 for a second bag.
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United Airlines followed suit last Friday with a US$5 increase for economy passengers on domestic flights.
Alaska Airlines also upped fees by US$5 for passengers who booked after January 2.
But JetBlue had the highest increase, upping its fees by US$10 for those who check their bags within 24 hours of departures.
