All of a sudden, the bus isn’t looking so bad…. Report Shows Airlines Made $27 Billion In Customer Fees In 2012 Ever wonder just how much money the airline industry is banking from robbing customers with sky-high baggage, food, booking and other fees? Bet you would have never guessed that the total was $27 billion…. via NBC News From paying for checked luggage and early boarding to extra legroom and on-board snacks, travelers know flying these days means never closing your wallet. Now, there’s more proof. Carriers around the world collected more than $27 billion last year in fees and other non-fare revenue, which has become “a crucial component of airline income,” a new report finds. The figure represents a 20 percent jump over 2011. “Every year, key numbers are getting larger. The most aggressive airlines easily generate more than 20 percent of their revenue from a la carte fees,” according to the report by IdeaWorks. The study was sponsored by CarTrawler, an Irish company that provides online car rental distribution systems. “Once largely limited to low fare airlines, ancillary revenue has now become a financial necessity for airlines all over the globe.” United Airlines was tops among carriers in the total amount of non-fare revenue collected last year, followed by Delta, American and Southwest, the study found. Ultra-low cost carrier Spirit Airlines collected the most as a percentage of its total income, with fees and other extras making up 38.5 percent of its revenue pie. The report analyzed financial information from 53 airlines that disclose their ancillary revenue, which includes the much-hated fees for services such as checked bags, priority check-in and assigned seats. “This is $27 billion of deception,” said Charlie Leocha, director of the Consumer Travel Alliance, adding all those extra charges are making it harder for fliers to know and compare the true cost of tickets at the time of booking. We already knew these airlines were getting away with murder in terms of how much they charge passengers in fees, but $27 BILLION?!? C’mon son. Shutterstock Continue reading →
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