Tag: operational efficiency

Airlines are once again increasing fees for checked bags, with the amount varying based on when the service is paid for. Major carriers like United Airlines, American Airlines, and JetBlue Airways have implemented a pricing structure that charges more for checking bags at the airport or close to departure compared to prepaying online.

The airlines argue that encouraging passengers to pay for checked bags in advance helps streamline the check-in process, freeing up staff and ensuring faster boarding. American Airlines recently raised its checked bag fees, introducing a two-tiered system similar to that of United, JetBlue, and some budget airlines.

For domestic flights, American Airlines now charges $35 to check the first bag when booked online in advance, compared to $40 for those who opt to pay at the airport. Exemptions exist for certain credit card holders, premium class travelers, and elite frequent flyers, who may enjoy at least one free checked bag on domestic or short international flights.

The rationale behind the lower fee for prepaying online is to allow airline staff more time to assist customers with special needs during the check-in process, according to an American Airlines spokesperson. The airline also announced a reduction in fees for slightly overweight bags, aiming to alleviate the burden on travelers facing last-minute adjustments at the airport.

This two-tiered fee strategy mirrors the approach of ultra-low-cost airlines and aims to incentivize passengers to finalize transactions early, benefiting both passengers and airlines, as explained by Frontier Airlines CEO Barry Biffle. The fees can vary based on demand and other factors, but most travelers opt to pay the baggage fee in advance.

Delta Airlines initiated a similar practice in 2020, and recently announced a $5 increase in bag fees for most North American flights, reaching $35 when prepaying online at least 24 hours before departure, or $40 otherwise. The second checked bag incurs a fee of $50, or $45 when paid at least 24 hours in advance.

Baggage fees represent a significant source of revenue for airlines, with U.S. carriers generating over $5.4 billion in the first nine months of 2023, up over 25% from the same period in 2019, according to the Transportation Department. Airlines attribute the need for higher fees to rising costs in labor and fuel, their primary expenses.

Southwest Airlines stands out among major U.S. carriers, allowing customers to check two bags for free. Chief Operating Officer Andrew Watterson emphasized Southwest’s commitment to maintaining this policy, stating that it does not cost the airline $35 or $40 to handle a bag. He noted that while some passengers on other major airlines choose to bring carry-on bags to avoid fees, this practice can potentially slow down operations. Watterson highlighted the benefits of a fair policy, customer satisfaction, and efficiency in Southwest’s operation.