Potential New Airline Fees

By Author: Steve Robinson
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While cheap fares, including cheap airplane tickets, discount hotel rooms, cheap auto rentals, and cheap vacation packages remain readily available, travelers need to be very careful maneuvering around a myriad of airline fees to keep their trips affordable.

Taking steps such as packing efficiently and only bringing carry-on luggage, and making your airline reservations online can help in the quest to keep airfare cheap.

New and/or expanding airline fees passengers may soon have to deal with include paying:

• A premium fee in order to gain early boarding access. In a roundabout way this is also a carry-on fee in that increasingly travelers who board late are often finding that overhead compartment space is gone.

• More to be able to have your entire family sit together. Increasingly airlines are charging more for aisle and window seats. Initially this was primarily restricted towards the front of the plane. However, many expect “all” (aisle and window) premium seats to eventually command additional fees.

• For the privilege to carry-on bags. Spirit Airlines already charges as ...
... much as $100 per carry-on bag that does not fit under the seat in front of the passenger.

The following is a breakdown of the top ten airlines, of which six were U.S. carriers, that earned the most ancillary revenue in 2011:

• $5.2 billion United/Continental
• $2.5 billion Delta
• $2.1 billion American
• $1.4 billion Qantas
• $1.2 billion Southwest
• $1.1 billion easyJet
• $1.1 billion Ryanair
• $1.1 billion US Airways
• $667 million TAM
• $610 million Alaska

United/Continental earned an average of $36.47 in ancillary fees for every passenger it flew in 2011.

In addition to new fees being introduced over time, existing fees continue to grow. Recently fees for same day flight changes have risen at American, JetBlue and United.

Some experts believe that the best way to anticipate new airline fees is by examining the current and forever changing fee structure of the two airlines that lead the industry in charging fees: Ryanair and Spirit Airlines.

Ryanair threatened in 2010 to introduce pay toilets and standing room only vertical seating. While such concepts were derided by critics, Ryanair lead the airline industry in charging for checked baggage and in flight snacks. Spirit Airlines was the first US airline to charge for checked luggage in 2007. Within a year’s time all major legacy airlines followed Spirit’s lead.

Spirit is the world’s industry airline leader in charging fees. Over 33 percent of Spirit’s total revenue was generated by fees in 2011.

Included in Spirit’s “optional fees” are $100 for notifying the airline at the gate of carry-on luggage that will not fit under the seat, and $10 per customer per booking for reservations.

Many expect Spirit’s carry-on fees to be emulated by most of its competition in the near future. Similarly, Ryanair’s “admin fee” and “reserved seating fee” is expected to spread to most airlines. Higher fees are expected for flight changes as well as frequent flier redemption.
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