Just how much do the airlines bring in with all their fees?

I think by now you all know how I feel about the airlines and their fees! So you won’t be surprised that a recent report once again had me seeing red. According to the report, released by IdeaWorks, a Wisconsin-based market research firm, airline fees have risen by 345% since 2006! And more fees are expected before the end of the year.
In 2008, airline fees brought the airlines $10.25 billion – that’s a lot of changed itineraries and checked bags.

Of course, the airlines want us to know that the industry is expected to lose $9 billion this year due to the recession and fuel costs, but according to the International Air Transport Association (IATA) the US airline industry will actually make a small profit. A result of all the fees, of course.

The US airlines have become so fee crazy, that for the first time a US carrier, Allegiant Air (a Las-Vegas based airline), out-charged Ryanair (the low-cost European airline famous for charging all kinds of crazy fees) bringing in 22.7% of its revenues from extra fees. In just the first half of 2009, Allegiant has brought in $85.9 million in fees, over a total of $56.3 million in all of 2008.

But the report also showed the growing importance of these fees to the larger airlines as well. American Airlines now brings in 9.3% of its revenue from fees; United brings in 7.9% and Delta brings in 6.6% from fees. JetBlue brings in 10% of its total revenue from the extra fees.

So while the airlines make money, flying continues to be a miserable experience for passengers. And passengers never know what the next fee will be and when it will suddenly pop up. It seems that every week an airline is imposing a new fee. The report concluded that eventually all carriers will at the very least charge bag fees for all coach passengers. I’d be willing to go a lot further and say that eventually, coach passengers (both domestic and international) will be charged for everything except the air they breathe and the right to use the bathroom.