Baggage Check, Other Fees Not Deterring Flying Public

 Fees for checked baggage, seat selection, and even pillows do not seem to be preventing people from buying airline tickets, which means airlines are likely to hang on to those fees as a critical revenue stream, analysts say.

US Airways, for example, reports taking in nearly $100 million just from checked bag fees, according to the Dallas Morning News. "I think these fees are here, and they're here to stay," US Airways Inc. executive Andrew Nocella said last week. As an industry, analysts say airlines collected $2.3 billion in fees in the first half of 2009.

The fees were born of skyrocketing fuel prices last summer, but massive losses due to the shrinking economy are expected give airlines a reason to sustain them. Aviation consultant Michael Boyd told the paper "If the customer will pay it and not attack you for doing it, why wouldn't it stay? It sounds a little bit harsh, but it is true – they're paying it, and they're not attacking you."

The International Air Transport Association said airline losses, which have totaled in the billions this year, would be much higher without the additional fees. One airline that has not started charging for checked bags is Southwest, but they have begun charging an additional fee for transporting an unaccompanied minor, as well as pets in the passenger cabin and an option for priority boarding.

American Airlines executive Will Ris said the airline industry is being hammered for what he describes as providing a service at a loss. "The irony is the perception is that we're ripping people off when the reality is we're giving the service at below costs," Ris said. "That has to end."

FMI: www.iata.org