U. S. airlines collect $566.3 million in baggage fees in Q1

U.S. carriers collected $566.3 million in baggage fees in the first three months of this year alone, according to statistics released by the Bureau of Transportation Statistics (BTS) of the U.S. Department of Transportation.

Published: 17 Jun 2009

U.S. carriers collected $566.3 million in baggage fees in the first three months of this year alone, according to statistics released by the Bureau of Transportation Statistics (BTS) of the U.S. Department of Transportation.

The baggage fees is up 13.6 percent from the $498.6 million collected in the fourth quarter of 2008 and up 362.1 percent from the $122.6 million collected in the first quarter of 2008.

Beginning in the second quarter 2008, most of the scheduled passenger carriers began charging for the first and second bags checked by passengers. Previously, additional charges were not applied until the third bag was checked.

American Airlines collected $108.1 million in the first quarter of 2009, the most of any carrier.

It was followed by Delta ($102.8m), US Airways ($94.2m), Northwest ($59.8m) and United ($59.1m).

Operating margin

BTS, a part of the Research and Innovative Technology Administration, reported that five of the seven reporting network airlines, most of the industry’s largest carriers, reported an operating loss margin in the January-to-March period. Only Alaska Airlines and Northwest Airlines reported an operating profit.

The low-cost and regional airlines groups both reported operating profit margins for the first quarter. Only low-cost carriers Virgin America and Southwest Airlines and regional carrier ExpressJet Airlines reported loss margins. The loss for Southwest was the first after 71 consecutive quarters with an operating profit.

The seven network carriers posted a loss margin of -4.0 percent in the first quarter with a combined operating loss of $867 million. In the first quarter of 2008, the seven network carriers reported an operating loss margin of -5.2 percent with a combined loss of $1.324 billion.

The top three operating profit margins were reported by low-cost carriers Allegiant Air, Spirit Airlines and JetBlue Airways. Low-cost carrier Virgin America, network carrier Delta Air Lines and regional carrier ExpressJet reported the largest operating loss margins.

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