Travelers Seem To Be Willing To Pay

Here's some food for thought as you pack your bags for a flight over the holidays. Airlines have certainly gone a long way towards turning their baggage holds into revenue centers, having collected over $2.5 billion in luggage fees over the course of this year. And analysts say the cost of putting your suitcase below is likely to continue to increase as long as passengers are willing to pay.

The carrier which has collected the most in baggage fees this year is Delta, with over $733 million in additional revenue from checked luggage through the first three quarters of the year. The Bureau of Transportation Statistics reports that American is second with nearly $432 million, and U.S. Airways is a close third at $388 million. Continental and United round out the top five, at about $91 million and $84 million, respectively.

CNN reports that airlines collected only about $464 million in luggage fees in 2007, the year the practice began. Through three quarters of 2010, they have collected five times that amount.

But the practice is not likely to change soon, according to aviation consultant Michael Boyd. He told CNN that airlines are likely to continue to charge the fees, and will raise them as long as there is not major pushback from passengers. He said that as much as 12 percent of airlines' revenue now comes from ancillary fees, and it has helped the carriers move back to profitability.

FMI: www.bts.gov