Airlines Discover Supply & Demand

United (UAUA) has increased its second bag fee from $25 to $50 — blaming falling fuel prices. Together American (AMR) and United had raised bag fees from $0 to $80 round trip, and now United wants to take that to $130 round trip for those bags (unless a lot of passengers complain).

Not surprisingly, adding fees has caused travelers to change their behavior. USA Today reports Tuesday:

American Airlines, the nation's largest carrier, says the average number of bags checked per passenger has dropped since it began imposing fees ($15 for the first bag, $25 for the second) earlier this year. Prior to introducing the fees, an average of 1.2 bags were checked per passenger. Now, it's slightly below one, spokesman Tim Smith says. "The biggest percentage drop is in the second bag (checked). It was more noticeable."

United Airlines, which said Monday that it will raise the fee on the second checked bag to $50 from $25, has also seen a decline in the average number of bags checked per person since February, spokeswoman Robin Urbanski says.

Southwest (LUV) is still leading the industry in low fees, with the Big Four carriers (AA, UA, USA (LCC) and Delta (DAL)) dead last. Until people switch their flights, the airlines will continue to tack on these surcharges, making for an unpleasant carryon baggage experience for all.

Disclosure: None

Comments

[Fi9chlWiz:]

Checking a bag is a service, not an integral part of your ticket price. I fly 100,000 miles a year and rarely check a bag.

If you're having an airline take fourteen changes of clothes for you and your entire family, you SHOULD pay for the privledge. It costs the airlines to transport your luggage - if you don't use that space, the airlines can certainly sell it to a shipper!

2008 Sep 16 09:14 AM

[Surferbell:]

I find the cartoon to be inappropriate, offensive, and misleading. The flying public should have a high regard for the men a women pilots that transport them safely on a daily basis. The cartoon depicts pilots in the wrong way. They do not set ticket prices as the picture suggests.

2008 Sep 16 01:21 PM

[primescot1:]

i'm a golf professional, so have NO choice in checking a second bag (my clubs). i just fly on SOUTHWEST unless i have no other choice. free checked bags, free ticket changes, rapid baggage retrieval, and efficient service. even if i have to make an extra stop.......they are the only airline that truly believes we have a choice.

2008 Sep 16 02:34 PM

[primescot1:]

i'm a golf professional, so have NO choice in checking a second bag (my clubs). i just fly on SOUTHWEST unless i have no other choice. free checked bags, free ticket changes, rapid baggage retrieval, and efficient service. even if i have to make an extra stop.......they are the only airline that truly believes we have a choice.

2008 Sep 16 02:34 PM

[Fi9chlWiz:]

primescot1 -

You may not like it, but you've made my point - you use more services than I do. Especially with a large and bulky item like golf clubs!

If you were shipping them, you'd expect to pay for that service. When I buy a ticket, I'm not purchasing shipment for a set of clubs - why should my ticket cost me more to pay for the service they give you?SW may not charge now, but they will eventually - because you're using an extra service.

Pay your own way!

2008 Sep 17 07:01 AM

[inthemoney:]

Who cares? Flying thewse days is worse than going to a dentist, to be avoided at all costs. It was a pain to check bags even before the fees, so I never checked my bag anyway. However, the probelm has always been not enough overhead space, I am not sure how they are dealing with it now.

2008 Sep 17 09:56 AM

[Island Girl:]

United's reasoning behind the new baggage charge just boggles my mind. "United (UAUA) has increased its second bag fee from $25 to $50 — blaming falling fuel prices."
Someone explain to me why "cheaper fuel" should mean you have to pay "MORE".
Of course, I would never fly United unless I had absolutely NO other choice. Our kids got stuck with them several times while in college, and every single experience could only be described as HORRIBLE.
I fly a LOT (mostly American because I'm out of DFW), and it has gotten to be such a hassle that I almost dread it. I'm not generalizing, but I've had some of the rudest flight attendants on the face of the earth on DFW flights the last couple of years... and I usually fly first class so I assume maybe I'm getting "better" treatment than the folks back in coach? If so, I really feel badly for them.

2008 Sep 17 12:52 PM