U.S. Department of Transportation just released a list of the 10 U.S. carriers collecting the highest amount in baggage fees. They racked up a total of $566.3 million in the first quarter, more than four times the $122.6 million collected in the year-ago period.
American Airlines led the pack with $108.1 million, followed by Delta Air Lines (not including its Northwest Airlines subsidiary) at $102.8 million and US Airways in third place at $94.2 million.
Even with these added fees collected, all 21 of the reporting carriers recorded a negative 2.4 percent loss margin during the period. This loss widened from negative .4 percent the previous year.
The seven legacy airlines posted a combined $867 million operating loss. The seven low cost carriers made a profit of $126 million. The seven regional carriers managed a $78 million profit.
The major carriers’ minus 4 percent margin accounted for entirety of the loss. Regional airlines reported a 4.3 percent profit margin. Low cost carriers made a profit of 2.9 percent.
Those are the results right from the government’s mouth with no spin. Bottom line — major airlines are losing money, shrinking and irritating more and more passengers; low cost carriers are profiting and expanding.
Charlie Leocha is the President of Travelers United. He has been working in Washington, DC, for the past 14 years with Congress, the Department of Transportation, and industry stakeholders on travel issues. He was the first consumer representative to the Advisory Committee for Aviation Consumer Protections appointed by the Secretary of Transportation from 2012 through 2018.
